Principles of Marketing Chapter 9
If a company finds that a new product concept is acceptable and should be moved forward, what is the next step in the process? A. Marketing strategy development B. Commercialization C. Test marketing D. Product development E. Business analysis
Answer: A
In the decline stage of the product life cycle, some companies continue to offer the product but reduce various costs, hoping that sales hold up. This is known as __________ the product. A. harvesting B. liquidating C. dropping D. pruning E. maintaining
Answer: A
Most products today are in which stage of their product life cycle? A. Maturity B. Introduction C. Product development D. Growth E. Decline
Answer: A
At which stage of the new product development process is a physical product first developed? A. Concept development and testing B. Marketing strategy development C. Test marketing D. Idea generation E. Product development
Answer: E
What must companies do to create successful new products? A. Understand its consumers, markets, and competitors and develop products that deliver superior value. B. Obtain successful products through acquisitions instead of doing internal development. C. Focus their new product development efforts only on consumers. D. Spend more on R&D than its competitors. E. Cut costs to keep the price of new products low.
Answer: A
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 and profits nonexistent B. profits would rise quickly and there would be rapid market acceptance of the product C. sales would fall and profits would drop D. sales would be slow but profits would be high E. sales would be high and profits would level off or decline
Answer: A
During the idea generation stage of the new product development process, it is important that __________. A. companies avoid crowdsourcing as a source of new ideas B. companies create a large number of ideas C. companies limit their ideas to those that come from their internal R&D departments D. companies generate a small number of ideas that seem feasible E. companies realize that it is illegal to use competitors as a source of new ideas
Answer: B
Which of the following statements concerning new products is correct? A. Products that are merely improved in some way are not considered new. B. Modified and improved products are considered new. C. Most new products succeed within two years of their introduction. D. To be considered new, the product must be something consumers have not seen before. E. A modified product is not considered a new product.
Answer: B
Which of the following statements is true regarding standardizing products for international markets? A. Standardization ensures that products will succeed in foreign markets. B. Standardization decreases product design, manufacturing, and marketing costs. C. Standardization helps a company develop a different image in different countries. D. Markets and consumers all over the world are alike, so a company should always standardize international products. E. Standardization means that marketers do not have to adapt their product offerings for different international markets.
Answer: B
During concept testing, who is the product concept actually tested on? A. Broad groups of consumers B. Competitors C. Groups of target customers D. Employees in the company's marketing department E. Internal R&D engineers
Answer: C
What is the first step of the new product development process? A. Concept development and testing B. Marketing strategy development C. Idea generation D. Business analysis E. Idea screening
Answer: C
Which government agency has the authority to ban or seize potentially harmful products and set severe penalties for violation of the law? A. The Federal Trade Commission (FTC) B. The Small Business Administration (SBA) C. The Consumer Product Safety Commission (CPSC) D. The Environmental Protection Agency (EPA) E. The Food & Drug Administration (FDA)
Answer: C
Which of the following statements regarding socially responsible product decisions is correct? A. Manufacturers are generally not concerned with product liability. B. Companies can safely ignore patent laws. C. The government may prevent companies from adding products through acquisitions if the effect threatens to lessen competition. D. Safety legislation has not yet been passed to regulate toys, automobiles, and fabrics. E. When companies drop products, they do not have any obligations to suppliers, dealers, and customers.
Answer: C
Which of the following statements regarding standard test marketing is correct? A. If test marketing is successful, the next step is to develop the product. B. A company usually tests only a small part of its marketing program in a test market. C. Test marketing can be costly and delay commercialization of the product. D. Test marketing is conducted in a simulated market setting. E. New products are always test marketed.
Answer: C
Which of the following statements regarding the growth stage of the product life cycle is correct? A. Sales will be slow and profits will level off or decline. B. The company will still be free of competition. C. Companies face a trade-off between high market share and high profits. D. Sales begin to climb slowly. E. Early adopters are not yet buying the product.
Answer: C
Which of the following would be an appropriate strategy during the maturity stage of the product lifecycle? A. Shift some advertising from building product awareness to building product conviction and purchase. B. Use promotional spending to inform consumers and get them to try the product. C. Modify the market, product offering, or marketing mix. D. Select products to maintain, harvest, or drop. E. Produce basic versions of the product and focus on selling to those buyers who are most ready to buy.
Answer: C
A firm improves product quality and adds new product features and models. It also shifts some advertising from building product awareness to building product conviction and purchase. At which stage of the product life cycle would this be a recommended strategy? A. Decline B. Product development C. Maturity D. Growth E. Introduction
Answer: D
According to the text, the most successful new products satisfy three criteria. What are these criteria? A. They solve a major customer problem, are differentiated, and are priced low. B. They appeal to a wide variety of consumers, are priced low, and can be mass marketed. C. They are differentiated, copy successful competitor products, and are priced low. D. They solve a major customer problem, are differentiated, and offer a compelling customer value proposition. E. They are something that has never been seen before, are priced low, and are offered on a limited basis.
Answer: D
To succeed in France, McDonalds had to __________. A. use the same cheeses on their burgers that are used in the United States B. use local bakeries to supply their baguettes C. standardize their products D. tailor their operations to local French preferences E. keep the same restaurant design as in the United States
Answer: D
A temporary period of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity is called a(n) __________. A. trend B. fashion C. aberration D. style E. fad
Answer: E
Companies should take a holistic approach to new product development. This means that the process should be __________. A. compartmentalized, team-based, and company-centered B. compartmentalized, sequential, and company-centered C. customer-centered, compartmentalized, and systematic D. customer-centered, team-based, and haphazard E. customer-centered, team-based, and systematic
Answer: E
One recent development in generating new product ideas is for a company to invite broad communities of people—such as employees, customers, and even the public at large—into the innovation process. This is known as __________. A. crowdfunding B. test marketing C. intrapreneurial idea generation D. concept testing E. crowdsourcing
Answer: E
What is a product concept? A. An idea for a new product B. A working model of a new product C. A new product which is ready to be test marketed D. The image of a new product in consumer's minds E. A detailed version of a new product idea stated in meaningful consumer terms
Answer: E
Which of the following statements about new product development strategy is correct? A. New products are usually successful because consumers like new things. B. A new product will succeed as long as it priced correctly. C. Developing new products is optional for companies with established brands. D. New products are not a key source of growth for companies. E. Innovation can be very expensive and very risky.
Answer: E
Installing an innovation management system to collect, review, evaluate, and manage new product ideas represents a __________ approach to new product development. A. customer-centered B. haphazard C. systematic D. sequential E. team-based
Answer: c