Chapter 9

What must companies do to create successful new​ products? A. Cut costs to keep the price of new products low. B. Obtain successful products through acquisitions instead of doing internal development. C. Spend more on​ R&D than its competitors. D. Understand its​ consumers, markets, and competitors and develop products that deliver superior value. E. Focus their new product development efforts only on consumers.

D

According to the​ text, the most successful new products satisfy three criteria. What are these​ criteria? A. They solve a major customer​ problem, are​ differentiated, and offer a compelling value proposition. B. They are something that has never been seen​ before, are priced​ low, and are offered on a limited basis. C. They appeal to a wide variety of​ consumers, are priced​ low, and can be mass marketed. D. They are​ differentiated, copy successful competitor​ products, and are priced low. E. They solve a major customer​ problem, are​ differentiated, and are priced low

A

Which of the following statements regarding standard test marketing is​ correct? A. Test marketing can be costly and delay commercialization of the product. B. A company usually tests only a small part of its marketing program in a test market. C. If test marketing is​ successful, the next step is to develop the product. D. Test marketing is conducted in a simulated market setting. E. New products are always test marketed.

A

A firm improves product quality and adds new product features and models. It also shifts some advertising from building product awareness to building product conviction and purchase. At which stage of the product life cycle would this be a recommended​ strategy? A. Maturity B. Growth C. Product development D. Introduction E. Decline

B

At which stage of the new product development process is a physical product first​ developed? A. Idea generation B. Product development C. Test marketing D. Marketing strategy development E. Concept development and testing

B

Installing an innovation management system to​ collect, review,​ evaluate, and manage new product ideas represents​ a(n) __________ approach to new product development. A. sequential B. systematic C. haphazard D. ​customer-centered E. ​team-based

B

What is a product​ concept? A. The image of a new product in​ consumer's minds B. A detailed version of a new product idea stated in meaningful consumer terms C. A new product which is ready to be test marketed D. An idea for a new product E. A working model of a new product

B

Which of the following statements about new product development strategy is​ correct? A. New products are not a key source of growth for companies. B. Innovation can be very expensive and very risky. C. A new product will succeed as long as it priced correctly. D. New products are usually successful because consumers like new things. E. Developing new products is optional for companies with established brands.

B

A temporary period of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity is called​ a(n) __________. A. fashion B. aberration C. fad D. style E. trend

C

Most products today are in which stage of their product life​ cycle? A. Product development B. Introduction C. Maturity D. Decline E. Growth

C

Which of the following statements concerning new products is​ correct? A. Most new products succeed within two years of their introduction. B. Products that are merely improved in some way are not considered new. C. Modified and improved products are considered new. D. To be considered​ new, the product must be something consumers have not seen before. E. A modified product is not considered a new product

C

To succeed in​ France, McDonalds had to​ __________. A. keep the same restaurant design as in the United States B. standardize their products C. use the same cheeses on their burgers that are used in the United States D. tailor their operations to local French preferences E. use local bakeries to supply their baguettes

D

Which government agency has the authority to ban or seize potentially harmful products and set severe penalties for violation of the​ law? A. The Small Business Administration​ (SBA) B. The Food​ & Drug Administration​ (FDA) C. The Environmental Protection Agency​ (EPA) D. The Consumer Product Safety Commission​ (CPSC) E. The Federal Trade Commission​ (FTC)

D

Which of the following statements is true regarding standardizing products for international​ markets? A. Standardization means that marketers do not have to adapt their product offerings for different international markets. B. Standardization ensures that products will succeed in foreign markets. C. Markets and consumers all over the world are​ alike, so a company should always standardize international products. D. Standardization decreases product​ design, manufacturing, and marketing costs. E. Standardization helps a company develop a different image in different countries.

D

When Dr. Footcare developed and launched a revolutionary new walking​ shoe, he knew that during the introductory stage of the product life cycle​ (PLC) __________. A. profits would rise quickly and there would be rapid market acceptance of the product B. sales would fall and profits would drop C. sales would be slow but profits would be high D. sales would be high and profits would level off or decline E. sales would be slow and profits nonexistent

E

During the idea generation stage of the new product development​ process, it is important that​ __________. A. companies create a large number of ideas B. companies realize that it is illegal to use competitors as a source of new ideas C. companies avoid crowdsourcing as a source of new ideas D. companies limit their ideas to those that come from their internal​ R&D departments E. companies generate a small number of ideas that seem feasible

A

In the decline stage of the product life​ cycle, some companies continue to offer the product but reduce various​ costs, hoping that sales hold up. This is known as​ __________ the product. A. harvesting B. dropping C. liquidating D. pruning E. maintaining

A

What is the first step of the new product development​ process? A. Idea generation B. Concept development and testing C. Business analysis D. Idea screening E. Marketing strategy development

A

One recent development in generating new product ideas is for a company to invite broad communities of people—such as​ employees, customers, and even the public at large —into the innovation process. This is known as​ __________. A. crowdfunding B. intrapreneurial idea generation C. test marketing D. concept testing E. crowdsourcing

E

Which of the following would be an appropriate strategy during the maturity stage of the product​ lifecycle? A. Use promotional spending to inform consumers and get them to try the product. B. Select products to​ maintain, harvest, or drop. C. Shift some advertising from building product awareness to building product conviction and purchase. D. Modify the​ market, product​ offering, or marketing mix. E. Produce basic versions of the product and focus on selling to those buyers who are most ready to buy.

D

Companies should take a holistic approach to new product development. This means that the process should be​ __________. A. ​customer-centered, team-based, and haphazard B. ​compartmentalized, team-based, and​ company-centered C. ​compartmentalized, sequential, and​ company-centered D. ​customer-centered, compartmentalized, and systematic E. ​customer-centered, team-based, and systematic

E

During concept​ testing, who is the product concept actually tested​ on? A. Employees in the​ company's marketing department B. Competitors C. Broad groups of consumers D. Internal​ R&D engineers E. Groups of target customers

E

If a company finds that a new product concept is acceptable and should be moved​ forward, what is the next step in the new product development​ process? A. Commercialization B. Business analysis C. Test marketing D. Product development E. Marketing strategy development

E

Which of the following statements regarding socially responsible product decisions is​ correct? A. Manufacturers are generally not concerned with product liability. B. Companies can safely ignore patent laws. C. When companies drop​ products, they do not have any obligations to​ suppliers, dealers, and customers. D. Safety legislation has not yet been passed to regulate​ toys, automobiles, and fabrics. E. The government may prevent companies from adding products through acquisitions if the effect threatens to lessen competition.

E

Which of the following statements regarding the growth stage of the product life cycle is​ correct? A. Sales will be slow and profits will level off or decline. B. Sales begin to climb slowly. C. Early adopters are not yet buying the product. D. The company will still be free of competition. E. Companies face a​ trade-off between high market share and high profits.

E