ch12 test

What is the first step in the 6-step new product development process? a.Idea generation b.Crystallization c.Epiphany production d.Discovery phase

a.Idea generation

During the _____ stage of the product life cycle, firms start to realize substantial profits from its investment. a.growth b.introduction c.maturity d.decline

growth

As companies fine-tune the design of a product and spend money to make the public aware of its merits, the firms may experience technical problems and financial losses. This scenario best fits which stage of the product lifecycle? a.growth b.maturity c.decline d.introductory

introductory

Which stage of the new product development process requires the largest financial investment due to the many expenses to establish marketing strategies, fund production facilities, acquaint the sales force, marketing partners, and potential customers about the new product? a.Commercialization b.Test marketing c.Development d.Concept testing

Commercialization

Jaric is a product manager for Beats headphones and is working with a new product development team on new wireless head phones. Jaric has hired a marketing research firm to conduct focus group interviews with prospective buyers to gain their feedback on a prototype of the head phones to learn more about their needs and how much they might be willing to pay for a wire-free headset. What stage of the new product development process does this represent? a.Development b.Idea generation c.Screening d.Concept testing

Development

Hormel who now owns the Skippy peanut butter brand has developed a snack item called Peanut Butter bites, which will be sold in the same shelf location area as peanut butter. Hormel has strong relationships with grocery stores but has set aside additional funds to support discounts and slotting allowances to induce distribution channel members to carry the new product. What stage of the product lifecycle does this represent? a.Introductory b.Growth c.Maturity d.Decline

Introductory

Stand-up paddleboarding has become a popular sport for people who enjoy the outdoors and live near a lake. One of the first companies to market paddleboards for lake use was Austin, Texas-based SUP ATX. Now, paddleboards can be found in most major sporting goods stores such as Dicks and even Sam's Club. SUP ATX has now begun to utilize advertising to emphasize their high-quality manufacturing process, quality, and upscale design features of the fiberglass boards. What stage of the product lifecycle characterizes the stand-up paddleboard and SUP ATX's marketing efforts? a.Maturity b.Decline c.Growth d.Introductory

Maturity

The ______ standards define international, generic criteria for quality management and quality assurance. a.ISO 9001 b.Kaplan 2030 c.EU 2020 d.ISBN 5000

a.ISO 9001

What is the key marketing challenge when a product is in the maturity stage of its lifecycle? a.Countering intense competition b.Stimulating initial demand c.Encouraging trial purchase d.Maximizing profits

a.Countering intense competition

Nabisco has noticed a decline in cookie sales and is considering selling off or stopping production on the lowest selling brands in order to lower costs. What stage of the product lifecycle would this represent? a.Decline b.Introductory c.Growth d.Maturity

a.Decline

Nintendo has experienced declining sales for its once popular DS hand-held game due to the adoption of smart phones and large number of games available for phones and tablets. Which stage of the product life cycle is the DS hand-held game? a.Decline b.Growth c.Maturity d.Introduction

a.Decline

A new brand of chewing gum is now available and the company is distributing free samples to consumers through an in-store promotional campaign. The company believes that once consumers try the new product, they will like it and begin to purchase the product. They are combining the free sample promotion with a price discount of buy one and get one free. What stage in the product lifecycle does this represent? a.Growth b.Maturity c.Introductory d.Decline

a.Growth

Cameron was one of the first of his friends to have a GPS-enabled running watch but he discovered quite a few technical issues with the product during the first few months of ownership and he complained to the company. The company stood behind their product though and replaced his watch with a new model at no charge. What stage of the product development process does this example illustrate? a.Introduction stage b.Growth stage c.Maturity stage d.Decline stage

a.Introduction stage

Blue Apron, a food delivery program, uses a variety of promotional tools such as TV ads, social media posts, and referral bonuses to customers who sign-up their friends for the meal program. The primary purpose of these campaigns is to stimulate initial demand. What stage of the product lifecycle best represents Blue Apron? a.Introductory stage b.Decline stage c.Growth stage d.Maturity stage

a.Introductory stage

Myrna is 86 years old and a great grandmother of 10. She was recently given a desktop computer so she can use e-mail and Facebook to stay connected. Since Myrna has never used a computer before, she's had difficulty understanding how it works and is afraid she'll do something wrong. Myrna's family tried to convince her to use a smartphone but she didn't want to pay the monthly fee since she still has her landline phone. Which adopter category is Myrna most likely classified regarding the desk top computer and applications (e.g. e-mail and Facebook) use? a.Laggard b.Innovator c.Early adopter d.Late majority

a.Laggard

In the last few years, Frito Lay has offered a sweepstakes, Do Us a Flavor, where customers submit ideas for new flavors of Lay's potato chips and then the top flavors receiving the most votes are produced and offered for sale. What stage of the product lifecycle is the Lay's potato chip brand? a.Maturity b.Growth c.Decline d.Introductory

a.Maturity

Jason was recently watching TV and noticed an advertisement for a new brand of shaving razors targeted to men called Harry's Razors. He was intrigued by their ads touting high quality and precision manufacturing at their factory in Germany and wondered how they would be able to compete with industry giants such as Gillette and Schick. What type of product development strategy is Harry's Razors utilizing? a.Product development b.Product diversification c.Market development d.Market penetration

a.Product development

Which of the following statements is TRUE regarding complexity as a factor influencing new product adoption? a.Products that are easy to understand and use will have faster adoption rates. b.Products that are easy to understand and use will have slower adoption rates. c.Products that are difficult to understand and use will have faster adoption rates. d.Products that are superior to existing products are adopted more slowly.

a.Products that are easy to understand and use will have faster adoption rates.

A Lexus automobile dealer has a nicely decorated and comfortable lounge for customers to utilize while their car is being serviced for routine maintenance such as oil changes. The dealer also provides a coffee bar, magazines, and free Wi-Fi. Which aspect of service quality is the dealer utilizing to demonstrate a commitment to high-quality service? a.Tangibles b.Reliability c.Assurances d.Empathy

a.Tangibles

Starbucks recently tried to gauge customer reactions to a new flavored coffee beverage by making it available in two cities—San Francisco and New York. It worked closely with the managers in those cities to market the new product in a real-life environment to determine whether or not the new beverage should be rolled out to the rest of Starbucks locations across the United States. What stage of the new product development process does this represent? a.Test marketing b.Concept testing c.Development d.Commercialization

a.Test marketing

Ford Motor Company utilized ______to identify performance standards by comparing their defect rate to those of other automakers such as GM, BMW, and Mazda. a.benchmarking b.competitor comparison c.tracking d.espionage

a.benchmarking

There are five categories of consumer adopters based on how long it takes each group to decide whether or not to become repeat purchasers of a new product. These categories include: a.consumer innovators. b.consumer decision makers. c.cannibalizers. d.advocates.

a.consumer innovators.

Busch is a brand of beer and is part of the Budweiser family of brands. The brand continues to have a following of loyal customers even though Budweiser does not support the brand through advertising or promotional events. This demonstrates that Busch beer is most likely in the _____ stage of the product lifecycle. a.decline b.introductory c.growth d.maturity

a.decline

Marshmallows are commonly purchased during the summer months and displayed with graham crackers and chocolate bars for consumers to purchase and make more. Kaitlin recently purchased a package of marshmallows and was surprised to see a recipe book inside the package with a variety of uses for marshmallows—toppings for sweet potatoes, an ingredient for fudge candy, and rice krispies treats to name a few. This is an example of pursuing the ____ strategy to extend the lifecycle of a product. a.finding new uses b.increasing the number of users c.increasing frequency of use d.modifying the product formulation

a.finding new uses

The breadth of a firm's product mix refers to: a.how many product lines it offers. b.how many different products it sells. c.how many variations of each product it provides. d.how many marketers make decisions about each product line.

a.how many product lines it offers.

The Florida Orange Juice Growers Association utilized a promotional campaign with the tagline, "It's not just for breakfast anymore." If the Florida Growers Association were attempting to extend the product lifecycle of orange juice with this promotion, it would be an attempt to: a.increase frequency of use. b.increase the number of users for the product. c.find new uses for the product. d.improve product quality.

a.increase frequency of use.

Soy milk has been enjoyed for many years by individuals who are health oriented, lactose intolerant, or following a vegan diet. Recently, Silk began a promotional campaign showing a Silk soy milk delivery driver sharing a glass of soy milk with a milk delivery driver—demonstrating that soy milk is for everyone. This is an example of the _____ strategy to extending a product's lifecycle. a.increasing the number of users b.increasing frequency of use c.finding new uses d.changing the product formulation

a.increasing the number of users

A product innovation's compatibility refers to: a.its consistency with the values and experiences of potential adopters. b.how difficult it is for potential adopters to understand. c.the degree of financial risk a potential adopter faces when trying it. d.the degree to which potential adopters can observe its superiority.

a.its consistency with the values and experiences of potential adopters.

The sale of alcohol in the United States is highly regulated and producers must sell their products to distributors who market the product to retail outlets. A craft beer manufacturer has local distribution but recently secured a national beverage distributor so its products could be sold in additional states across the country. The craft beer manufacturer is pursuing a _____ product development strategy. a.market development b.market penetration c.product development d.product diversification

a.market development

More and more consumers today are seeking ways to reduce the use of chemicals in their household and Heinz, the major producer of distilled white vinegar, is promoting its product for a variety of cleaning uses—from the coffee pot to windows, floors, and more, vinegar is a great, natural product. Heinz approach for product development is categorized as: a.market penetration. b.product development. c.product diversification. d.market development.

a.market penetration.

Companies who pursue a product development strategy often utilize _____ to identify new markets. a.market segmentation b.mystery shopping c.observation research d.prestige pricing

a.market segmentation

During the _____ stage of the product lifecycle, companies shift their promotion efforts to emphasize differences between their product and competitor offerings. a.maturity b.growth c.introductory d.decline

a.maturity

During the _____ stage, differences between competing products are often small as most companies offer the attributes desired by customers. a.maturity b.introductory c.decline d.growth

a.maturity

Taco Bell has pursued innovative strategies to partner with other brands such as Doritos to add new products to their menu. These new menu items include Nacho Cheese Doritos Locos Tacos, Fiery Doritos Locos Tacos, and Cool Ranch Doritos Locos Tacos. This partnership and complementary promotional campaign indicate that the taco items are in the _____ stage of the product lifecycle. a.maturity b.introductory c.growth d.decline

a.maturity

During the decline stage of the product lifecycle, the goal is to: a.maximize profits and market share. b.demonstrate distinctive features compared to competitor models. c.encourage trial use. d.stimulate initial demand.

a.maximize profits and market share.

The grocery store is a wonderful venue to find new products and Christina was browsing in the cookie aisle and noticed several new brands of "gluten-free" cookies. Since Christina has a gluten allergy, she has to be careful about eating packaged goods. The introduction of gluten-free products from companies such as Nabisco and Keebler is an example of the _____ new product development strategy. a.product diversification b.market penetration c.product development d.market development

a.product diversification

The depth of a firm's product mix refers to: a.how many product lines it offers. b.how many variations of each product line it sells. c.how many of its products have long shelf lives. d.how many different products it sells.

b.how many variations of each product line it sells.

During which new product development procedure would an organization be likely to use tools like consumer surveys or focus groups? a.Concept development b.Qualitative analysis c.Quantitative review d.Concept testing

d.Concept testing

During the maturity stage of the product lifecycle, all of the following are likely to occur except: a.Competition intensifies. b.Firms may redesign products by offering additional colors, styles, or features. c.Companies shift promotions to emphasize competitive differences. d.Firms attempt to maximize remaining profits.

d.Firms attempt to maximize remaining profits.

Which of the activities in benchmarking establishes a baseline for comparison of the firm's processes to those of industry leaders? a.External analysis b.Comparative analysis c.Performance review d.Internal analysis

d.Internal analysis

A marketer must simultaneously address a need to develop informational advertising for a product and a problem with financial losses related to that product. In what stage of the product lifecycle is this marketer's offering? a.Growth b.Maturity c.Decline d.Introductory

d.Introductory

During the maturity stage of the product lifecycle, which of the following is most likely to occur? a.The firm develops promotions that stress information about the product's features. b.The firm experiences technical problems and financial losses. c.Sales volume rises rapidly as new customers make initial purchases. d.Sales of the product level out as competition intensifies.

d.Sales of the product level out as competition intensifies.

During the growth stage of the product lifecycle, which of the following is most likely to occur? a.The firm develops promotions that stress information about the product's features. b.The firm must deal with many competitors. c.There are major innovations or shifts in consumer preferences. d.The firm starts to realize substantial profits from its investment.

d.The firm starts to realize substantial profits from its investment.

At the interest stage of the consumer adoption process, potential buyers: a.make trial purchases of the new product. b.decide to use the new product regularly. c.consider the likely benefits of the new product. d.begin to seek information about the new product.

d.begin to seek information about the new product.

If the market for a new product is deemed to be too small or unable to grow at a rate that will yield satisfactory sales, this problem would likely become evident during which stage of the new product development process? a.development b.test marketing c.commercialization d.business analysis

d.business analysis

Benchmarking is fundamentally a process of: a.review. b.redesign. c.valuation. d.comparison.

d.comparison.

At the evaluation stage of the consumer adoption process, potential buyers: a.make trial purchases of the new product. b.begin to seek information about the new product. c.decide whether to pay a higher price for the new product. d.consider the likely benefits of the new product.

d.consider the likely benefits of the new product.

The Sadler Soap Company offers a bar soap, a liquid cleanser, and a body wash. It has recently added travel sizes and economy sizes of all three products. Sadler is changing the ______ of its product mix. a.length b.width c.breadth d.depth

d.depth

Suzanne is a yoga instructor. When beginners attend her class, she goes out of her way to ask about their needs, challenges, and expectations. She also modifies the classic poses for them and offers special equipment to help them achieve proper balance. Suzanne is extremely popular among these customers because of her emphasis on which variable of service quality? a.tangibles b.assurances c.associability d.empathy

d.empathy

A market penetration strategy seeks to increase sales of _______ products in _____markets. a.new, new b.new, existing c.existing, new d.existing, existing

d.existing, existing

A market development strategy seeks to increase sales of _____ products in _____ markets. a.new, existing b.existing, existing c.new, new d.existing, new

d.existing, new

New product development begins with input from many sources. For example, there may be suggestions from customers, suppliers, retailers, and the sales force. This stage of the new product development process is known as: a.suggestion solicitation. b.idea review. c.input analysis. d.idea generation.

d.idea generation.

The final activity in benchmarking is: a.comparing internal processes to those of the industry's performance leaders. b.identifying the strengths and weaknesses of a firm's internal processes. c.identifying critical market segments. d.implementing changes for quality improvement.

d.implementing changes for quality improvement.

If a meat processor adds a turkey burger and a lamb burger to its line of ready-to-grill beef patties, the firm is most likely affecting its product mix by: a.decreasing its depth. b.increasing its width. c.decreasing its length. d.increasing its depth.

d.increasing its depth.

When Procter & Gamble decided to add men's shaving products to its assortment of home cleaning brands and women's personal care items, the company was: a.increasing the depth of its product mix. b.increasing the length of its product mix. c.decreasing the depth of its product mix. d.increasing the breadth of its product mix.

d.increasing the breadth of its product mix.

During the decline stage of the product lifecycle, shifts in consumer preferences cause an absolute decline in: a.supplies of raw material. b.the economy. c.exchange rates. d.industry sales.

d.industry sales.

Benchmarking requires two types of analyses. These are: a.financial and marketing. b.qualitative and quantitative. c.past and future. d.internal and external.

d.internal and external.

If a firm is using TV ads and social media to inform the market about a product and explain its features, the product is most likely in the _______ stage of its lifecycle. a.maturity b.communication c.promotion d.introductory

d.introductory

To offset declining sales of books in the United States, Barnes & Noble has begun opening new bookstores in countries where it has never done business. The company is using a __________ strategy. a.market penetration b.product development c.product diversification d.market development

d.market development

With the opening of Cuba to United States trade, observers predict that many American clothing stores will soon open outlets in that country. Based on this information, the American retailers will be pursuing the product development strategy known as: a.product development. b.market penetration. c.diversification. d.market development.

d.market development.

The Dairy Board's longtime "Got Milk?" advertising campaign encouraged milk buyers to increase the volume of their purchases so they wouldn't run out. This was an example of _________ strategy. a.market development b.product diversification c.product development d.market penetration

d.market penetration

Procter & Gamble sells an assortment of personal care, cleaning, and food products. This blend of product lines and individual offerings is the firm's product: a.cluster. b.pack. c.value proposition. d.mix.

d.mix.

The strategy of product development involves the introduction of ______ products into ______ markets. a.new, new b.existing, established c.existing, new d.new, established

d.new, established

In a product diversification strategy, _____ products are introduced into _______ markets. a.new, existing b.existing, existing c.existing, new d.new, new

d.new, new

With reference to the five characteristics of a product innovation, the innovation is said to have greater ______ if an initial free or discounted trial enables adopters to reduce their risk of financial loss when they try it. a.possibility of adoption b.compatibility c.possibility of sale d.possibility of trial use

d.possibility of trial use

At one time, the McDonald's Corporation attempted to move beyond its fast food operations in the United States by opening a chain of hotels in Europe. This _________ strategy was unsuccessful for the firm. a.market development b.product development c.market penetration d.product diversification

d.product diversification

The responsiveness variable of service quality best represents: a.consistency of performance. b.physical evidence of quality. c.confidence communicated by the provider. d.readiness to serve the customer.

d.readiness to serve the customer.

At a certain step in the new product development process, a project may be abandoned if it fails to meet organizational standards like compatibility with current product offerings. This step is known as: a.standards review. b.concept testing. c.introduction. d.screening.

d.screening.

A consumer's perception of the quality of a service he or she has purchased is usually determined during the: a.service intersection. b.sales encounter. c.purchase agreement. d.service encounter.

d.service encounter.

If a new product is unable to meet expectations in a real-life environment, this failure would likely become evident during which stage of the new product development process? a.concept testing b.screening c.business analysis d.test marketing

d.test marketing

Diffusion refers to: a.the impact on a firm's market share of a competitor's new product. b.consumer awareness of a firm's advertising message. c.how widely a new product is distributed. d.the process by which a new product is accepted in the marketplace.

d.the process by which a new product is accepted in the marketplace.

The empathy variable of service quality best represents: a.consistency of performance. b.physical evidence of quality. c.confidence communicated by the provider. d.the provider's understanding of the customer's needs.

d.the provider's understanding of the customer's needs.

The depth of a product mix refers to the _______ each product marketed by the firm. a.investments in b.ingredients in c.comprehension of d.variations in

d.variations in

During the _____ phase of new product development, companies utilize development standards to determine whether or not a project should be considered further. These standards might include product uniqueness, raw material availability, and compatibility with existing product offerings. a.screening b.concept testing c.business analysis d.commercialization

screening

Every employee at a fitness center is required to wear a crisp white uniform. Towels are neatly rolled and stacked, the floors glisten with cleanliness, and there is always a beautiful display of fruit in the hallway. Based on this information, the fitness center prioritizes which variable of service quality? a.empathy b.assurances c.responsiveness d.tangibles

tangibles