Chapter 8 Marketing

If a product passes both the concept test and the product test, the next step is most likely to be ________.

Test marketing

In which of the following cases is crowdsourcing used for new product development?

A company creates a forum where anyone can contribute new product ideas.

The new product development process usually starts with ________.

Idea generation

Modifying a product is an ineffective strategy in the maturity period of the product life cycle because the product's decline is irreversible at this stage.

False

Which statement is most likely true about idea generation in the new product development process?

Idea generation is usually followed by procedures that reduce the total number of ideas.

In which stage of the product life cycle will promotional expenditures be significantly high in an attempt to create consumer awareness of a product and its features?

Introduction

The maturity stage of the product life cycle is characterized by a slowdown in sales growth.

True

The moral of the product life cycle is that companies must continually innovate; otherwise, they risk extinction.

True

A detailed version of a product idea stated in meaningful consumer terms is a ________.

product concept

Introducing a new product into the market is called ________.

commercialization

The stage in which product ideas are presented to groups of target consumers physically or symbolically is referred to as ________.

concept testing

Kallton is a multinational communications and information technology corporation. Its principal products are mobile telephones and tablets. It recently announced on its Web site that customers can suggest ideas for its upcoming product model. Contributors of short-listed ideas will be adequately rewarded. In this case, Kallton is using ________ to generate new product ideas.

crowdsourcing

Parvon, a cleaning product, is in the maturity stage of the product life cycle, and Parvon managers have decided to modify the market. Which of the following steps should Parvon managers most likely take to achieve this goal?

find new market segments for the brand

Taco Bell test marketed Doritos Locos Tacos for three years and developed 45 prototypes. Once the decision was made to launch the new taco shell, it moved into the ________ stage of the new product development process.

product development