Ch 9 Review
63) Product life cycles refer to the life of ______. 63) ______ A) a firm's individual product B) a fashion C) a firm's brand D) a product idea E) any or all of these is correct
D
10) ______ refers to a commitment to constantly make things better one step at a time. 10) ______ A) Continuous improvement B) Sales orientation C) Just-In-Time D) Production focus E) Ladder approach
A
24) ______ means giving employees the authority to correct a problem without first checking with management. 24) ______ A) Training B) Empowerment C) Benchmarking D) Responsibility adjustment E) Induction
B
26) At what stage of the product life cycle do industry profits start to decline? 26) ______ A) Stagnation B) Market growth C) Market introduction D) Market maturity E) Sales decline
B
18) Which of the following products is in the market growth stage of the product life cycle? 18) ______ A) E-book readers B) Breakfast cereals C) Carbonated soft drinks D) Laundry detergents E) Gasoline-powered cars
A
2) In which of the following situations is the new product entering the market introduction stage of the product life cycle? 2) _______ A) Apple just introduced a computer operating system that is so "user-friendly" it responds to spoken commands. B) Porsche just introduced a new luxury sport-ute to compete against sport-utes made by others. C) Colgate-Palmolive just introduced a "new and improved" chemical formula for its "Total" toothpaste. D) Home Depot (a home improvement chain) just introduced its own dealer brand of paint. E) All of these situations show a new product entering the market introduction stage of the product life cycle.
A
13) Acme Corporation is currently experiencing rising sales for a new product idea it pioneered several months ago. Profits are also increasing, so other competitors are now entering the market with similar products. The competitive situation is changing from monopoly to monopolistic competition. In which stage of the product life cycle is Acme Corporation operating? 13) ______ A) Market introduction B) Market maturity C) Market growth D) Sales decline E) Market establishment
C
51) The last step in the new-product development process is ______. 51) ______ A) idea generation B) screening C) commercialization D) idea evaluation E) development
C
73) When building quality into services, managers should ______. 73) ______ A) require employees to check with managers before correcting any problem B) watch over employees to make sure they do things right every time C) ensure managerial involvement at all levels of interaction with customers D) not focus on training because people will learn by experience E) empower employees by giving them the authority to satisfy customer needs
E
74) All of the following products are in the market maturity stage of the product life cycle EXCEPT ______. 74) ______ A) carbonated soft drinks B) breakfast cereals C) gasoline-powered cars D) laundry detergents E) solar roof cells for home electricity generation
E
20) Passage of the Consumer Product Safety Act means that ______. 20) ______ A) some businesspeople may go to jail if they offer unsafe products B) producers are no longer liable for an injury if it is the consumer's fault C) consumers will be more willing to pay for safer products in the future D) product-related injuries will be eliminated in the future E) All of these alternatives are correct.
A
25) In which product life cycle stage must companies focus on educating potential customers about the advantages of a new product concept? 25) ______ A) Market introduction B) Market maturity C) Sales decline D) Market establishment E) Market growth
A
31) The stage of the new-product development process in which marketers evaluate the firm's strengths, weaknesses, and objectives is ______. 31) ______ A) screening B) idea generation C) commercialization D) development E) idea evaluation
A
77) The stage of the product life cycle characterized by informative promotion but little customer awareness of a product is ______. 77) ______ A) market introduction B) market extinction C) market growth D) market maturity E) sales decline
A
5) Midway, Inc. has seen most of its competitors drop out of its product-market due to declining industry sales and profits. But Midway still has much demand for its product from a small group of loyal customers. This product-market is in which product life cycle stage? 5) _______ A) Market growth B) Sales decline C) Market maturity D) Market development E) Market introduction
B
55) When a market test for a new product is successful, the firm typically introduces the product in different regions of the U.S. in sequential stages. This process is called a ______. 55) ______ A) concept test B) rollout C) JIT D) fallout E) TQM
B
6) The product life cycle ______. 6) _______ A) applies more to individual brands than to categories or types of products B) describes the stages a new product idea goes through from beginning to end C) shows that sales and profits tend to move together over time D) has five major stages E) All of these alternatives are correct.
B
65) It is outside the power of the Consumer Product Safety Commission to ______. 65) ______ A) order returns of unsafe products B) search for unsafe products in consumers' homes C) set safety standards for products D) back up its orders with fines and jail sentences E) order repairs of unsafe products
B
14) The stages in the new-product development process are idea generation, screening, ______. 14) ______ A) idea evaluation, development, and ROI estimation B) development, marketing mix, and ROI estimation C) idea evaluation, development, and commercialization D) idea evaluation, market research, and commercialization E) market research, development, and commercialization
C
28) At Toyota, its Lexus designers attempt to make improvements to the car's design each year, even if those changes are minor ones. This process is an example of ______. 28) ______ A) empowerment B) market testing C) continuous improvement D) product liability E) concept testing
C
38) Which of the following functions is generally outside the purview of brand managers? 38) ______ A) Coordinating with sales manager, advertising agencies, and channel members B) Managing each product category, or each brand, in an organization C) Conducting research and development D) Performing promotion duties traditionally handled by the advertising manager E) Overseeing new-product development
C
56) New products that are minor variations on existing products, and which require no change to consumer behavior, are called _____. 56) ______ A) new products B) second movers C) continuous innovations D) fads E) discontinuous innovation
C
59) Before widespread adoption of TQM, most firms assumed that ______. 59) ______ A) customers scarcely notice deficiency in quality B) the advantages of mass production were insignificant C) production defects were an inevitable part of mass production D) the cost of replacing defective parts was unacceptable E) eliminating defects from mass production was achievable
C
70) The product life cycle is divided into four major stages. They are ______. 70) ______ A) ideation, market growth, market maturity, and investment decline B) concept introduction, market decline, market maturity, and sales decline C) market introduction, market growth, market maturity, and sales decline D) market penetration, market growth, market maturity, and sales decline E) market introduction, profit growth, market maturity, and profit decline
C
21) Getting reactions from customers about how well a new-product idea fits their needs is ______. 21) ______ A) screening B) product liability C) target marketing D) concept testing E) brand positioning
D
37) During the introduction stage of the product life cycle, ______. 37) ______ A) most products achieve intensive distribution B) "me-too" products quickly take market share away from the innovator C) industry profits are at their highest D) promotion is likely to be needed to build primary demand E) None of these alternatives is true.
D
4) As a product moves into the market maturity stage of the product life cycle ______. 4) _______ A) promotion emphasizes informing consumers more than persuading them B) the competitive situation moves toward monopoly C) there is less consideration of competition in setting prices D) consumers tend to view products as being more similar E) None of these alternatives is true.
D
50) Two keys to improving service quality are ______. 50) ______ A) JIT delivery and supply chain management B) positive and negative reinforcement C) appraisals and rewards D) training and empowerment E) monitoring and control
D
15) If you are seeking new product ideas for your business, your ______ are a good source. 15) ______ A) intermediaries B) salespeople C) customers D) production people E) All of these would be good sources for new product ideas.
E
17) A marketing manager might use the total quality management approach to ______. 17) ______ A) reduce defects in goods produced in factories B) make delivery schedules more reliable C) train better salespeople D) improve customer service E) All of these alternatives are correct.
E
27) Competition for a product or product category begins to increase rapidly during the ______ stage of the product life cycle. 27) ______ A) market extinction B) sales decline C) market maturity D) market introduction E) market growth
E
30) At one time most firms assumed defects were an inevitable part of mass production. _____ firms showed that this assumption was not valid. 30) ______ A) Latin American B) American C) Chinese D) European E) Japanese
E
54) Which of the following statements does not accurately characterize new-product development? 54) ______ A) Some companies move too fast to launch a new product. B) Some companies move too slow to launch a new product. C) New-product development is costly. D) New-product development has a high risk of failure. E) New-product development has a low risk of failure.
E
58) The introduction of a new flavor of Dr. Pepper is an example of a ______. 58) ______ A) trivial innovation B) practical innovation C) discontinuous innovation D) dynamic innovation E) continuous innovation
E
29) In the context of the legal obligation of sellers to pay damages to individuals, product liability settlements ______. 29) ______ A) may exceed not only a company's insurance coverage but its total assets B) may exceed a company's insurance coverage but not its total assets C) never exceed a company's insurance coverage or its total assets D) never exceed three-fourths of a company's insurance coverage E) are always too small to make a difference to the company's total assets
A
33) In the idea generation stage of the new-product development process, ______. 33) ______ A) firms need a continuous flow of ideas B) using competitors as a source of ideas should be avoided C) bad ideas should be discarded as soon as possible D) analysis of consumer complaints about current products is unlikely to generate any new ideas E) None of these alternatives is correct.
A
34) Which statement is TRUE about products in the sales decline stage of the product life cycle? 34) ______ A) A declining product may still be profitable for some time and it might be more appropriate to phase out this product gradually. B) Brand managers should phase out this product as quickly as possible. C) Customers will always abandon the declining product immediately if an alternative is available. D) Phasing out a product at this time is fairly easy and this strategy will cut future losses. E) None of these statements about the sales decline stage is true.
A
36) All of the following products are in the market maturity stage of the product life cycle EXCEPT ______. 36) ______ A) ultra high-definition TVs B) laundry detergents C) breakfast cereals D) gasoline-powered cars E) carbonated soft drinks
A
39) Industry profits decline during the market maturity stage due to______. 39) ______ A) increased competitive pressure to cut prices B) mismanaged budgets and price stabilization C) declining sales and dipping promotion costs D) sale of shoddy varieties of the original product E) declining competition and declining manufacturing costs
A
44) Kelly Drake, marketing manager for Find-Ur-Way global positioning systems, is testing the marketing mix for one of her company's new products. The product was introduced in two different markets with different prices and packages. This suggests the new product was in the _____ step of the new-product development process. 44) ______ A) development B) commercialization C) idea evaluation D) idea generation E) screening
A
52) Chris Carmine manages specific products and promotion at Bright-n-Shiny Toothbrush Company. Her job responsibility sounds like that of a ______. 52) ______ A) brand manager B) channel manager C) project coordinator D) marketing research manager E) sales representative
A
62) When thinking about the product life cycle, a good manager knows that ______. 62) ______ A) a product that is mature in one market may be in the growth stage in another international market B) sales and profits for individual brands always follow the same life cycle pattern as industry sales and profits C) the only stage in which products are introduced is the market introduction stage D) all products will eventually earn a profit E) None of these alternatives is correct.
A
68) The new-product development process ______. 68) ______ A) is based on the idea that a firm should eliminate potentially unprofitable product ideas as early as possible. B) relies solely on test marketing to decide whether to drop an idea or take it to market. C) is especially important since it increases the number of new product ideas that get to the commercialization stage. D) seeks to take as many ideas to market as possible, hoping to find a breakthrough opportunity. E) None of these alternatives is true.
A
16) Over the past several years, like other auto manufacturers, General Motors (GM) has introduced many new models of sport utility vehicles (SUVs) in all of its major divisions. This proliferation of SUVs and an increase in gasoline prices have caused sales to level off. In response, General Motors offered rebates of up to $5,000, or no-interest financing, on selected models of SUVs. The largest rebates went to current owners of GM vehicles, so that they would replace their current vehicles with a GM model instead of switching to another brand. The rebates have been heavily advertised on national television. Profit margins per vehicle have shrunk as a result of these costly promotions. In what stage of the product life cycle is GM currently operating? 16) ______ A) Market introduction B) Market maturity C) Sales decline D) Market growth E) Market establishment
B
19) If a producer does not have a new-product development process, it ultimately means that the firm ______. 19) ______ A) can survive on old products indefinitely B) will survive on current products until going out of business C) is incapable of innovation D) lacks financial resources E) does not want to be profitable
B
22) National Family Opinion (NFO) contacts several hundred members of its consumer panel and provides them with a printed description of a new chewing gum and its package. Consumers are then given a survey containing several multiple-choice questions about their attitudes toward the new product, based on what they read in the description. The final survey question asks consumers to indicate the likelihood that they would purchase the product. NFO seems to be conducting a ______. 22) ______ A) sensitivity test B) concept test C) attitude test D) prototype test E) market test
B
23) According to the text, a new product is one that is ______. 23) ______ A) completely new physically and conceptually B) new in any way for the company concerned C) physically changed D) unique E) None of these is a good answer.
B
3) When assessing a firm's quality from the customer's perspective, marketing managers must take account of all instances where customers have contact with the firm and its products. These instances are called ______. 3) _______ A) pain points B) touchpoints C) connectors D) intersects E) sales kiosks
B
32) According to the FTC, for a producer to call a product "new," the product must ______. 32) ______ A) be no more than two months old B) be entirely new or changed in a functionally significant or substantial respect C) have achieved brand insistence D) have been changed in some way during the last year E) None of these alternatives is correct.
B
42) The legal obligation of sellers to pay damages to individuals who are injured by defective or unsafely designed products is called ______. 42) ______ A) breach of warranty B) product liability C) product responsibility D) design enforcement E) rule of reason
B
45) According to the Federal Trade Commission (FTC), a new product is ______. 45) ______ A) only new for twelve months B) entirely new or changed in a functionally different or substantial respect C) something that is new in any way for the company concerned D) only new for two months E) None of these is a good answer.
B
46) A "rollout" happens in the ______ step of the new-product development process. 46) ______ A) screening B) commercialization C) idea evaluation D) development E) idea generation
B
47) Fashion is the currently accepted or popular ______. 47) ______ A) assortment B) style C) trend D) fad E) idea
B
48) _____ is a type of innovative product that requires customers adopting the innovation to significantly change their behavior. 48) ______ A) Dynamically continuous innovation B) Discontinuous innovation C) Continuous innovation D) Behavior-change innovation E) Fad innovation
B
53) During the market maturity stage of the product life cycle ______. 53) ______ A) total industry sales and profits reach their maximum levels B) persuasive promotion becomes more important C) promotion emphasizes the advantages of the basic product concept D) some competitors drop out of the market-and no new firms enter E) None of these alternatives are correct.
B
71) Which of the following statements about the commercialization stage of the new-product development process is FALSE? 71) ______ A) People need to be hired and trained to provide services. B) A firm should always rollout the product to the entire target market at one time. C) Channels of distribution need to be filled with goods. D) Introductory promotion tends to be more costly if the firm is entering a very competitive market. E) None of these statements is False.
B
76) Which stage of the product life cycle is the largest profit stage for companies? 76) ______ A) Market introduction B) Market growth C) Market maturity D) Stagnation E) Sales decline
B
12) 3-D televisions are very new products in the U.S. market. They are in the ______ stage of the product life cycle. 12) ______ A) sales decline B) market maturity C) market introduction D) market growth
C
11) Regarding the idea generation stage of the new-product development process, which of the following is true? 11) ______ A) Most companies don't need a special procedure for seeking new product ideas because so many ideas are coming from so many different sources. B) It is best to focus on only a few good ideas at this stage. C) Studying customers' ideas is not very helpful, since they tend to focus on minor technical changes in existing products. D) Business firms often get new product ideas from competitors. E) None of these alternatives is true.
D
60) Gradual "rollouts" are characteristic of which step of the new-product development process? 60) ______ A) Idea screening B) Idea generation C) Idea evaluation D) Commercialization E) Development
D
66) Regarding product life cycles, good marketing managers know that ______. 66) ______ A) any product modification results in a new product life cycle B) any new brand must start off in the market introduction stage C) product life cycles cannot be extended D) a firm's product can be withdrawn before its related product life cycle is over E) All of these alternatives are true.
D
8) Industry sales are highest in which of the following product life cycle stages? 8) _______ A) Market development B) Market growth C) Market introduction D) Market maturity E) Sales decline
D
9) Marketing managers should recognize that ______. 9) _______ A) every segment within a market has the same product life cycle B) product life cycles appear to be getting longer C) the product life cycle describes the sales and profits of individual products, not industry sales and profits D) firms that enter mature markets have to compete with established firms for declining industry profits E) None of these alternatives is correct.
D
Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The job of product or brand manager is often created when a firm wants to ______. 1) _______ A) do away with product "champions" B) eliminate the job of the research and development department C) eliminate the job of sales manager D) handle many different kinds of products or brands E) None of these alternatives is correct.
D
35) The Consumer Product Safety Commission can ______. 35) ______ A) set safety standards for products B) back up its orders with fines C) back up its orders with jail sentences D) order return of "unsafe products" E) All of these alternatives are correct.
E
40) At which stage of the product life cycle are VHS video recorders? 40) ______ A) Stagnation B) Market maturity C) Market introduction D) Market growth E) Sales decline
E
41) Full-scale market tests ______. 41) ______ A) are unrealistic because they do not test the whole marketing mix B) are used mostly for products having long lead times C) are not expensive even when a full market picture is sought D) should always be skipped when consumer preferences are clear E) may provide competitors advance information about products
E
43) A new product idea is more likely to move quickly through the early stages of the product life cycle when the product ______. 43) ______ A) is easy to use B) has advantages that are easy to communicate C) can be given a trial D) is compatible with the values and experiences of target customers E) All of these alternatives are correct.
E
49) During the development step of new product development, a firm could develop a ______, an early sample or model built to test a concept. 49) ______ A) concept test B) ideatype C) creation D) embryo concept E) prototype
E
57) Regarding product life cycles, good marketing managers know that ______. 57) ______ A) all competitors lose money during the sales decline stage B) industry sales reach their maximum during the market growth stage C) firms earn their biggest profits during the market introduction stage D) they are getting longer and profit margins are widening E) industry profits reach their maximum during the market growth stage
E
61) When planning for the different stages of the product life cycle, managers should remember that ______. 61) ______ A) The correct strategy depends on how quickly the new idea will be accepted by consumers. B) Sometimes, competitors can help to build customer interest in a new product idea. C) Not all new product ideas catch on with consumers or intermediaries. D) A firm that can change its strategy quickly may have an advantage over less flexible competitors. E) All of these alternatives are true.
E
64) Product life cycles ______. 64) ______ A) are very long for movies B) last 5 years for each product idea C) are identical in length across all geographic regions D) average 90 days E) vary in length but are generally getting shorter
E
67) Product managers ______. 67) ______ A) coordinate their efforts with individuals within and outside the company B) are sometimes responsible for a product's whole marketing effort C) are especially common in large companies D) may serve as "product champions" in planning and implementing the promotion effort E) All of these alternatives are correct.
E
69) Which of the following products is most likely in the market introduction stage of the product life cycle? 69) ______ A) Laundry detergents B) Breakfast cereals C) Gasoline-powered cars D) Carbonated soft drinks E) Electric cars
E
7) By law, a firm may call a new product "new" for only a stipulated period of time. Such regulations are established by the ______. 7) _______ A) US Department of Justice (DOJ) B) Consumer Product Safety Commission (CPSC) C) Food and Drug Administration (FDA) D) Environmental Protection Agency (EPA) E) Federal Trade Commission (FTC)
E
72) Analyzing customer comments and other companies to find new product concepts is carried out during which step of the new-product development process? 72) ______ A) Screening B) Idea evaluation C) Commercialization D) Development E) Idea generation
E
75) When looking for new product ideas, which of the following would be good sources? 75) ______ A) Your competitors B) Your intermediaries C) Your salespeople D) Your production people E) All of these would be good sources for new product ideas.
E
