[MKT 201] Chapter 9 - Quiz (1)

A temporary period of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity is called a(n) __________. a) trend b) fad c) aberration d) fashion e) style

b) fad

Which of the following statements regarding the growth stage of the product life cycle is correct? a) The company will still be free of competition. b) Sales begin to climb slowly. c) Companies face a trade-off between high market share and high profits. d) Early adopters are not yet buying the product. e) Sales will be slow and profits will level off or decline.

c) Companies face a trade-off between high market share and high profits.

Most products today are in which stage of their product life cycle? a) Growth b) Product development c) Maturity d) Introduction e) Decline

c) Maturity

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

c) Modified and improved products are considered new.

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

c) Product development

Which of the following statements about new product development strategy is correct? a) A new product will succeed as long as it priced correctly. b) New products are not a key source of growth for companies. c) New products are usually successful because consumers like new things. d) Innovation can be very expensive and very risky. e) Developing new products is optional for companies with established brands.

d) Innovation can be very expensive and very risky.

During the idea generation stage of the new product development process, it is important that __________. a) companies generate a small number of ideas that seem feasible b) companies avoid crowdsourcing as a source of new ideas c) companies limit their ideas to those that come from their internal R&D departments d) companies create a large number of ideas e) companies realize that it is illegal to use competitors as a source of new ideas

d) companies create a large number of ideas

What is the first step of the new product development process? a) Business analysis b) Concept development and testing c) Marketing strategy development d) Idea screening e) Idea generation

e) Idea generation

What must companies do to create successful new products? a) Spend more on R&D than its competitors. b) Obtain successful products through acquisitions instead of doing internal development. c) Cut costs to keep the price of new products low. d) Focus their new product development efforts only on consumers. e) Understand its consumers, markets, and competitors and develop products that deliver superior value.

e) Understand its consumers, markets, and competitors and develop products that deliver superior value.

When Dr. Footcare developed and launched a revolutionary new walking shoe, he knew that during the introductory stage of the product life cycle (PLC) __________. a) sales would be slow but profits would be high b) sales would be high and profits would level off or decline c) sales would fall and profits would drop d) profits would rise quickly and there would be rapid market acceptance of the product e) sales would be slow and profits nonexistent

e) sales would be slow and profits nonexistent