marketing chapter 8

At which stage of the new product development process is crowdsourcing​ used? a. Product development b. Idea screening c. Idea generation d. Commercialization e. Marketing strategy development

c. Idea generation

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. a. intradepartmental new product development b. sequential new product development c. team-based new product development d. simulated test market e. controlled test market

c. team-based new product development

Fads are characterized by their ________. a. enduring nature that spans several generations b. low rates of adoption by consumers c. unusually high sales and rapid decline d. basic and distinctive modes of expression that seldom become unpopular e. non-attainment of the last two stages of the product life cycle

c. unusually high sales and rapid decline

At which stage of the new product development process is a physical product first​ developed? a. Product development b. Marketing strategy development c. Idea generation d. Concept development and testing e. Test marketing

a. Product development

In the early​ 1970's, Gary Dahl sold pet rocks. The product had a​ short, temporary period of unusually high sales driven by consumer enthusiasm and immediate product​ popularity, but then sales declined very quickly. The PLC sales pattern for pet rocks is known as​ ______. a. a fad b. a normal product life cycle curve c. a style d. a failure e. a fashion

a. a fad

Which of the following costs is most likely associated with commercialization? a. building or renting a manufacturing facility b. paying groups of consumers for participating in crowdsourcing activities c. determining a product's planned price, distribution, and marketing budget d. developing a prototype of a product e. using simulated tests to measure market capacity

a. building or renting a manufacturing facility

A company's external sources of new product ideas include its ________. a. distributors b. managers c. salespeople d. engineers e. manufacturing staff

a. distributors

The Learning Institute recently conducted a brainstorming session that generated a large number of ideas for adding new products and services. Learning Institute managers will most likely use​ ________ next to arrive at a realistic number of ideas to adopt. a. idea screening b. crowdsourcing c. business analysis d. concept development e. concept testing

a. idea screening

When Dr. Lawncare developed his revolutionary new solar powered​ lawnmower, he knew that during the introductory stage of the product lifecycle​ ___________. a. sales would be slow and profits​ non-existent b. sales would fall and profits would drop c. sales would be low but profits would be high d. profits would rise quickly and there would be rapid market acceptance of his product. e. sales would be slow and profits would level off or decline

a. sales would be slow and profits​ non-existent

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 ________. a. test marketing b. portfolio analysis c. commercialization d. internal marketing e. business analysis

a. test marketing

GI Jane 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 GI Jane product development team will most likely use ________ next to arrive at a realistic number of products for the new fatigues line. a. crowdsourcing b. idea screening c. concept testing d. concept development e. business analysis

b. idea screening

A detailed version of a product idea stated in meaningful consumer terms is a ________. a. product feature b. product concept c. product idea d. product image e. product framework

b. product concept

To create successful new​ products, a company must​ _______. a. focus their new product development efforts only on consumers b. understand its​ consumers, markets, and competitors and develop products that deliver superior value c. obtain successful products through acquisitions instead of doing internal development d. cut costs to keep the price of new products low e. spend more on​ R&D that its competitors

b. understand its​ consumers, markets, and competitors and develop products that deliver superior value

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

d. Modified and improved products are considered new.

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. Use promotional spending to inform consumers and get them to try the product. c. Shift some advertising from building product awareness to building product conviction and purchase. d. Modify the​ market, product offering and marketing mix. e. Produce basic versions of the product and focus on selling to those buyers who are the most ready to buy.

d. Modify the​ market, product offering and marketing mix.

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. a. business analysis b. idea generation c. concept screening d. product development e. test marketing

d. product development

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? a. sales outsourcing b. product modification c. industry repositioning d. product harvesting e. marketing mix modification

d. product harvesting

Goldtone is a multinational communications and information technology corporation. Its principal products are mobile telephones and tablets. It recently announced on its website that customers can suggest ideas for its upcoming product model. Contributors of​ short-listed ideas will be adequately rewarded. In this​ case, Goldtone is using​ ________ to generate new product ideas. a. business analysis b. marketing strategy development c. test marketing d. concept development e. Crowdsourcing

e. Crowdsourcing

Which of the following statements is true regarding product life cycle​ curves? a. Managing products through their life cycle is an easy task. b. All products follow the traditional​ 5-stage PLC model. c. Marketing strategies do not change for different life cycle stages. d. Once a product reaches the decline​ stage, it cannot be recycled back to growth. e. Marketers do not know the exact shape and length of their​ product's life cycle in advance.

e. Marketers do not know the exact shape and length of their​ product's life cycle in advance.

Sales are rising​ rapidly, competitors are growing in number and the customers are early adopters. Which stage of the PLC does this​ describe? a. Product development b. Decline c. Maturity d. Introduction e. Growth

e. growth

A company launching a new product at the commercialization stage of new product development must first decide on​ ___________. a. the target market b. profit goals c. market share goals d. the value proposition e. introduction timing

e. introduction timing

Which of the following is true about the introduction stage of a new product? a. Profits are typically high. b. Promotion spending is relatively low. c. Less money is needed to attract distributors. d. Companies tend to avoid basic versions of the product. e. Sales growth tends to be slow.

e. sales growth tends to be slow

In which of the following cases is little or no test marketing most likely recommended for a new product? a. when the product requires a major investment b. when management is unsure of the projected demand for the product c. when the risks associated with introducing the product are high d. when management is unsure of the marketing program for the product e. when the costs of developing and introducing the product are low

e. when the costs of developing and introducing the product are low