Ch. 9 Quiz Questions

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

Companies face a​ trade-off between high market share and high profits

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. Growth B. Product development C. Decline D. Maturity E. Introduction

Growth

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. A new product will succeed as long as it priced correctly. C. New products are usually successful because consumers like new things. D. Developing new products is optional for companies with established brands. E. Innovation can be very expensive and very risky.

Innovation can be very expensive and very risky

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. Marketing strategy development B. Business analysis C. Product development D. Commercialization E. Test marketing

Marketing strategy development

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

Maturity

________ is the product life cycle period when sales growth slows because the product has achieved acceptance. Profits level off because marketing costs increase in the face of competition. A. Growth B. Maturity C. Introduction D. Decline E. Product development

Maturity

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

Modify the​ market, product​ offering, or marketing mix

Which of the following statements characterizes the introduction stage of the​ PLC? A. The company incurs minimal expenses. B. The product achieves acceptance by most potential buyers. C. There are increased marketing outlays. D. Profits are nonexistent. E. Promotional expenditures are zero.

Profits are nonexistent

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

Test marketing can be costly and delay commercialization of the product

Why are customers often considered the most important sources of new product​ ideas? A. Customers are close to the market and can pass along information about problems and new product possibilities. B. Customers review the​ sales, costs, and profit projections for a new product to find out whether the product satisfies the​ company's objectives. C. The company can analyze customer questions and complaints to find new products that better solve consumer problems. D. Customers estimate the minimum and maximum sales to assess the range of risk. E. Customers buy competing new​ products, take them apart to see how they​ work, analyze​ sales, and then decide to purcha

The company can analyze customer questions and complaints to find new products that better solve consumer problems

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 solve a major customer​ problem, are​ differentiated, and are priced low. 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 are something that has never been seen​ before, are priced​ low, and are offered on a limited basis.

They solve a major customer​ problem, are​ differentiated, and offer a compelling value proposition

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

Understand its​ consumers, markets, and competitors and develop products that deliver superior value

A review of the​ sales, costs, and profit projections for a new product to find out whether they satisfy the​ company's objectives is called a​ ________. A. business feasibility plan B. product acceptance C. marketing strategy development D. business analysis E. business proposal

business analysis

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

companies create a large number of ideas

What causes a specific​ brand's life cycle to change​ quickly? A. competitive attacks and responses B. costs of raw materials C. shift in company strategy D. changing demographics E. new technology

competitive attacks and responses

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

crowdsourcing

The product life cycle presents challenges. Which of the following is LEAST likely to require a company to adapt its marketing​ strategies? A. competition B. changing tastes of consumers C. aging of products D. decreased manufacturing costs E. developments in technology

decreased manufacturing costs

Which of the following stages of the PLC is characterized with the same level or slightly higher level of promotional expenditures in an attempt to respond to increasing​ competition? A. adoption B. growth C. maturity D. product development E. decline

growth

Which of the following is a common reason for new product​ failure? A. patent ownership exclusively held by the company B. low selling prices of products C. ineffective social marketing campaigns D. incorrect estimation of the market size E. low product development costs

incorrect estimation of the market size

Which of the following would lead to greater competition in the maturity stage of the​ PLC? A. market pioneers B. poor management C. inadequate promotion D. diminishing budgets E. overcapacity

overcapacity

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. sales would be high and profits would level off or decline B. sales would be slow and profits nonexistent C. profits would rise quickly and there would be rapid market acceptance of the product D. sales would be slow but profits would be high E. sales would fall and profits would drop

sales would be slow and profits nonexistent

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

systematic

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

tailor their operations to local French preferences

What is included in the first part of a marketing strategy​ statement? A. promotional mixes B. distribution strategy C. product longevity D. target market description E. long-run sales goals

target market description

Which of the following is the most likely circumstance for a company to decide to do little or no test​ marketing? A. when management lacks confidence in the marketing strategy B. when the costs of developing and introducing the product are low C. when the new product requires a major investment D. when management lacks confidence in the new product E. when the product has no substitutes and is new in its category

when the costs of developing and introducing the product are low