Marketing Chapter 8 test 3
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 true of the product life cycle (PLC)?
It is generally difficult to forecast the sales level at each PLC stage.
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
39) ________ is used to study the course of a product's sales and profits for the duration that it is produced and sold in the market.
A product life cycle
Which of the following is most likely true of a product in the maturity stage of the product life cycle? A) Sales are zero, and the company's investment costs mount. B) New competitors enter the market. C) A slowdown occurs in sales growth. D) Sales increase with decreasing competition. E) New distribution channels are acquired.
A slowdown occurs in sales growth.
________ involves a review of the sales, costs, and profit projections for a new product to find out whether they satisfy a company's objectives.
Business analysis
Which of the following statements is most likely true about the new product development process?
Customers, competitors, and suppliers are major sources of new product ideas.
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.
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.
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.
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.
Which of the following is true about the introduction stage of a new product?
Sales growth tends to be slow.
Which of the following is true of the growth stage of the product life cycle?
Sales start climbing quickly.
________ is the stage where a product and its proposed marketing program are introduced into realistic market settings.
Test marketing
A product concept is ________.
a detailed version of a product idea stated in meaningful consumer terms
Which of the following would most likely have the longest duration in a market and be characterized by several periods of renewed interest?
a style
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
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 the toy
Introducing a new product into the market is called ________.
commercialization
The stage in which a product concept is presented to groups of target consumers physically or symbolically is referred to as ________.
concept testing
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 because departments work closely together in ________.
cross-functional teams
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
When an end user's problems and experiences define a new product, the approach is called ________.
customer-centered new product development
A product has hit the ________ stage when sales plunge to zero, or they drop to a low level where they continue for many years.
decline
A product life cycle has five distinct stages: product development, introduction, growth, maturity, and ________.
decline
Internal sources of new product ideas for a company include its ________.
employees
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(n) ________.
fad
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
The new product development process usually starts with ________.
idea generation
Quest Inc. recently conducted a brainstorming session that generated a large number of ideas for adding new products and services. Quest managers will most likely use ________ next to arrive at a realistic number of ideas to adopt.
idea screening
Which of the following steps of the new product development process would most likely use an R-W-W framework?
idea screening
Which of the following is an internal source of new product ideas for a company?
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
In a sequential new product development process, concept testing is most likely to be followed by ________.
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 PLC.
maturity
When a product hits the ________ stage, profits level off or decline because of increased marketing outlays to defend the product against competition.
maturity
As a result of ________, a company cannot make its product illegally similar to a competitor's already established product.
patent laws
The second part of a marketing strategy statement describes the ________ of a new product.
planned price
In a sequential new product development process, once a product or service passes the business test, it moves into ________.
product development
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
Tavera, an automobile company, experienced a significant decline in sales over the last 10 months of its flagship car, Tetra. In response, Tavera reduced its R&D, advertising, and sales expenditures for Tetra in an attempt to improve short-run profits. Which term best describes Tavera's actions with regards to Tetra?
product harvesting
A ________ is the way consumers perceive an actual or potential product.
product image
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 third part of a marketing strategy statement describes the ________ of a new product.
profit goals
Some products that have entered the decline stage can be cycled back to the growth stage through ________.
repositioning
Using ________, researchers measure consumer responses to new products and marketing tactics in laboratory stores or virtual online shopping environments.
simulated test markets
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
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
If a product passes both the concept test and the product test, the next step is most likely to be ________.
test marketing
Wayne Industries, a retail and home improvement store, is developing a new lawnmower. The marketing strategy for the product has already been developed and presented. A prototype has also been developed by the company's R&D team. The prototype is now being tested rigorously to ensure that there are no product liability issues. Once the prototype of the lawnmower passes product tests, the next step is most likely to be ________.
test marketing
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