marketing ch 8

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

Which of the following is most likely true of a product in the maturity stage of the product life cycle?

a slowdown occurs in sales growth

An innovation management system would most likely be used by ________.

brand managers to collect, review, and evaluate new product ideas

Which of the following costs is most likely associated with commercialization?

building or renting a manufacturing facility

Hollingsworth is a retail company that is planning to release a new line of luxury personal care products. Its managers are now reviewing the sales history of similar products and conducting marketing surveys to estimate minimum and maximum sales for the product. In which of the following stages of the new product development process is the product?

business analysis

________ involves a review of the sales, costs, and profit projections for a new product to determine whether they satisfy a company's objectives.

business analysis

Gershwin, a musical toy for toddlers, is in the maturity stage of the product life cycle, and Gershwin managers have decided to modify the product. What will Gershwin managers most likely do to achieve this goal?

change the packaging of this toy

Introducing a new product into the market is called ________.

commercialization

Evans and Hills, a beverages manufacturing company, has developed a new line of specialty teas and is seeking regular input from the test marketing process. To facilitate this process, the firm uses BuyerScan, a software that generates store-by-store, week-by-week reports on the actual sales of tested products and the impact of in-store and in-home marketing efforts. Which of the following approaches does this scenario illustrate?

controlled test markets

The team-based new product development approach saves times and increases effectiveness because departments work closely together in ________.

cross-functional groups

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

Sleek Designs Inc. is producing its first eReader. The company is striving to overcome some of the issues communicated by customers about competitive products including screen glare and product bulkiness. Sleek Designs Inc. is using a ________ approach in their new product development process.

customer-centered

Which of the following statements is most likely true about the new product development process?

customers, competitors, distributers, and suppliers are major sources of new product ideas

A product life cycle has five distinct stages: product development, introduction, growth, maturity, and ________.

decline

During the ________ stage of the product life cycle, product sales may plunge to zero, or drop to a low level where they continue for many years.

decline

Flurrbies, a line of winter accessories by a leading fashion label, quickly fell in and out of favor with customers. Flurrbies represents an example of a ________.

fad

t/f A sequential product development approach is team-oriented, enabling firms to bring products to market very quickly.

false

t/f Acquisitions are not considered a source of new products for organizations.

false

t/f An abstract presentation of a product concept is likely to increase the reliability of the concept test.

false

t/f Concept testing typically follows the marketing strategy development phase of the new product development process

false

t/f During concept testing, a product is evaluated by management without any input from external sources.

false

t/f It's important for a market pioneer to choose a launch strategy that is consistent with competitive positioning strategies.

false

t/f Manufacturers rely on distributors and suppliers as internal sources of new product ideas.

false

t/f 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

t/f Product development usually costs the least among all the steps of the new product development process

false

t/f Salon Finish is test marketing its new smoothing shampoo by assessing consumer satisfaction in laboratory stores where hair is washed and blown dry. Salon Pro is using controlled test marketing in this scenario.

false

t/f Since suppliers are so close to the market, they are valuable sources of information about consumer problems, marketing opportunities, and new product possibilities.

false

t/f The amount of test marketing needed is the same for each new product.

false

t/f The business analysis stage is the final step in the new product development process.

false

t/f When developing a new product, concept testing should ideally be followed by the business analysis stage.

false

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

In the ________ stage, a firm most likely faces a trade-off between high market share and high current profit.

growth

Which of the following statements is most likely true about the product life cycle?

growth is a period of rapid market acceptance and increasing profits

the new product development product process usually begins with

idea generation

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

Safari Unlimited recently conducted national research to generate ideas for a new line of fatigues geared to women. The company uncovered a number of ideas about clothing and accessory preferences as well as important benefits such as built-in sunblock and durability. The Safari Unlimited product development team will most likely use ________ next to arrive at a realistic number of products for the new fatigues line.

idea screening

Which of the following steps of the new product development process would most likely use an R-W-W framework?

idea screening

The Dairy Bar, a national soft-service ice cream retailer, buys cones from Cones & More. Cones & More is an important resource for marketplace information. They're considered a(n) ________ source of new product ideas for the Dairy Bar.

internal

Companies like 3M, Google, and Sony have ________ that encourage employees to develop new ideas.

intrapreneurial programs

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

Which of the following is true of the product life cycle (PLC)?

it is generally difficult to forecast the sales level at each stage of PLC

Doggie World concept tested an idea for a new chew toy that would entertain dogs while simultaneously cleaning their teeth. Dog owners were pleased with the results. The next stage in developing the new product concept is ________.

marketing strategy development

Craft Inc.'s Krayons is a multi-color chalk material that was released in the market over a century ago. Since the release, the company has had remarkable sales and Krayons has remained unchanged. However, over the last few years, sales of Krayons have been stagnant. Competitors have begun marking prices down, and increasing their advertising and sales promotions. Craft's Krayons is most likely in the ________ stage of the product life cycle.

maturity

When a product is in the ________ stage, profits level off or decline because of increased marketing outlays to defend the product against competition.

maturity

Appliances Galore is continually updating its line of refrigerators to reflect market trends and customer needs. Although the product class is in the maturity stage of the product life cycle, they maintain healthy sales of their line of refrigerators by continually ________

modifying the product

Which of the following is a disadvantage of a team-based approach to new product development?

organizational confusion and tension are likely to affect the process

As a result of ________, a company cannot make its product illegally similar to a competitor's already established product.

patent laws

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

product concept

In the ________ stage of new product development, products undergo rigorous tests to make sure that they perform safely and effectively, or that consumers will find value in them.

product development

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

In a sequential new product development process, which of the following is true of the product development step?

product development is usually followed by test marketing

Electronics International has experienced a significant decline in sales for SweetTunes, its MP3 player, during the past two years. In response, the company has reduced its advertising and sales expenditures for SweetTunes in an attempt to improve short-run profits. Which term best describes Electronics International's strategy for SweetTunes?

product harvesting

The style, ease of use, and multi-blade technology of Gillette's Fusion razor system is a ________ that has favorably impacted consumer perceptions about other new products sold by the company.

product image

________ can describe a product class, a product form, or a brand.

product life cycle concept

Some companies are now appointing ________, whose job is to protect consumers from harm and the company from liability by proactively ferreting out potential product problems

product stewards

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

product testing

Which of the following is true about the introduction stage of a new product?

sales growth tends to be low

The second part of a marketing strategy statement describes the ________ of a new product

sales price, distribution, and marketing budget

The third part of a marketing strategy statement describes the ________ of a new product

sales, market share, and profit goals

Which of the following is true of the growth stage of the product life cycle?

sales. start. climbing quickly

Under a ________ product development approach, one company department works to complete its stage of the product development process before passing the new product along to the next department and stage.

sequential

Using ________, researchers measure consumer responses to new products and marketing tactics in laboratory stores or virtual online shopping environments.

simulated test markets

Colonial furniture has been in existence since the 1600s and continues to adorn homes today. According to the product life cycle concept, it would be described as a ________.

style

A company's external sources of new product ideas include its

suppliers

The first part of a marketing strategy statement describes the ________ of a new product.

target market, planned value proposition, and sales goals

Under a ________ new product development approach, company departments work closely together in cross-functional groups, overlapping the steps in the product development process to save time and increase effectiveness.

team-based

At Fantastic Flavors, a large regional chain of candy stores, employees from marketing, design, production, and finance departments work in cross-functional groups to save time and money in the new product development process. From this description, it can be inferred that Fantastic Flavors uses a(n) ________ approach.

team-based new product development

Foods International is developing a new gluten-free, chili-flavored pretzel. The marketing strategy for the product has already been developed and presented to top management. Several prototypes were also formulated by the company's R&D team. The final prototype is now being tested rigorously to ensure that it passes FDA standards. Once approved, the next step will most likely be ________.

test marketing

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

test marketing

________ is the stage where a product and its proposed marketing program are introduced into realistic market settings

test marketing

t/f ) When a company decides to go international with a product, it must first figure out what products and services to introduce and in which countries.

true

t/f Companies that combine a customer-centered approach with team-based new product development gain a big competitive edge by getting the right new products to market faster.

true

t/f During the decline stage of the product life cycle, product sales may plunge to zero, or they may drop to a low level where they continue for many years.

true

t/f In the new product development process, the purpose of idea generation is to create a large number of ideas and the purpose of the next set of stages in the process is to reduce that number.

true

t/f Product modifications are an important source of new products for organizations.

true

t/f The Consumer Product Safety Act of 1972 established the Consumer Product Safety Commission, which has the authority to ban or seize potentially harmful products and set severe penalties for violation of the law.

true

t/f The federal government has the legal authority to prevent a company from adding products through acquisitions if the acquisition threatens to lessen competition.

true

t/f The installation of an innovation management system allows a company to collect, review, evaluate, and manage new product ideas.

true

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

true

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

true

t/f Under a team-based new product development approach, company departments work closely together in cross-functional teams. Overlapping the steps in the product development process saves time and increases effectiveness.

true

Fads are characterized by their ________.

unusually high sales and rapid decline

A product is in the maturity stage of the product life cycle, and the company decides to modify the marketing mix. Which of the following steps is the company most likely to take?

use aggressive sales promotions

In which of the following cases is little or no test marketing most likely recommended for a new product?

when the costs of developing and introducing the product are low

A company launching a new product must first decide ________.

when to launch the product