CHAPTER 9
A
1. Customers who are good at generating new product ideas or applications of products are called _____. a. lead users b. alpha testers c. innovators d. first movers e. trend setters
INNOVATIVE
1. Lead users are potential customers who are ______ and develop new applications or new products for their own use without the aid of a supplier.
LAUNCHED
1. The introduction stage is the first stage of the product life cycle after a product is _____.
A
1. The stage in the product life cycle when the market is saturated with competitors is known as the _____ stage. a. maturity b. growth c. introduction d. decline e. downsizing
HIGH
10. A product's cost is relatively _____ in the growth stage
ONE BY ONE
10. A rolling launch involves introducing a new offering across markets _____ in order to work out any challenges or problems related to marketing and supporting the offering.
D
10. In terms of a manufactured offering, using the same technology platform as another product can be a. costly and cumbersome. b. seen as having a lack of innovative spirit. c. a subpar strategy. d. effective and less expensive. e. difficult for training technicians.
C
10. The stage in the product life cycle when an organization must have enough distribution outlets to get the product to the customers is known as the _____ stage. a. maturity b. growth c. introduction d. decline e. downsizing
MARKET TEST
11. A(n) _____ is the test launch of a product's complete marketing plan to ensure that it reaches buyers, gets positive reactions, and generates sales of the product.
E
11. When demand is higher than supply, marketers are most concerned with the fact that a. retail distribution will have to be increased. b. price is increased. c. product promotion will have to be increased. d. negativity is hard to overcome. e. the door opens for competitors to enter the market.
C
11. _____ ensures that a product meets its specifications in a variety of environments determined by the company. a. Concept testing b. Product testing c. Alpha testing d. Primary testing e. Beta testing
INTENSE COMPETETION
11. _____ in the maturity stage causes profits to fall until only the strongest players remain.
SERVICE COMPONENTS
12. Customers are particularly important co-creators of offerings when they are consuming products with _____.
A
12. Marketing efforts associated with skimming price strategies include a. placing the product in a limited number of distribution outlets. b. providing potential customers with coupons. c. advertising to mass markets. d. providing special incentives to increase product awareness. e. providing samples of the product to consumers.
STANDARDIZE OR ADAPT
12. When introducing products to international markets, firms can either _____ or _____, the former being to keep the products the same and the later being to change the product to meet the needs of the local culture.
E
12. _____ not only tests whether the offering works as advertised, but it also tests the offering's delivery mechanisms, service processes, and other aspects of marketing the product. a. Concept testing b. Product testing c. Alpha testing d. Primary testing e. Beta testing
D
13. A price skimming strategy often attracts consumers who are a. price sensitive. b. laggards. c. the early majority. d. early adopters. e. the late majority.
DECREASE
13. In the decline stage, changes in consumer preferences, technological advances, and alternatives that satisfy the same need can lead to a(n) _____ in demand for a product.
A
13. While Mark is performing beta tests on his company's new product, the _____ is being developed and tested that will be used to launch the product. a. marketing communication plan b. marketing plan c. market research report d. product stress structure e. product beta plan
PROCESS; FINANCIAL
13. _____ feasibility affects _____ feasibility
B
14. A company may induct a(n) _____ to ensure that the launch of a new product reaches buyers, gets positive feedback, and generates sales of the product or service. a. rolling launch b. market test c. beta test d. marketing communication plan e. sales promotion
LEAD USERS
14. In B2B settings, beta tests are usually conducted with preferred customers and _____.
SALES; DROP TO LOWER LEVELS
14. The decline stage is characterized by a decrease in _____ that continues to _____.
B
14. The stage in the product life cycle when promotions focus on the specific benefits of the product is known as the _____ stage. a. maturity b. growth c. introduction d. decline e. downsizing
C
15. A company must balance an offering's _____ risk against the offering's _____ risk. a. financial; investment b. product; financial c. investment; opportunity d. opportunity; investment e. financial; product
TESTING
15. In the new offering development process, the launching stage follows the _____ stage.
A
15. Most consumer products are in the _____ stage of their life cycle. a. maturity b. growth c. introduction d. decline e. downsizing
HARVESTING
15. _____ entails gradually reducing all costs spent on a product offering.
DIVESTING
16. If a firm sells off a brand to another firm, they have engaged in ______ a product offering
D
16. Modifying the target market helps a company attract different customers by a. changing the packaging. b. sticking with the same customer. c. standardizing the product. d. finding new uses for a product. e. modifying the product quality.
: employees; customers; suppliers; competitors
16. New offering ideas can come from _____, _____, _____, and _____.
A
17. Companies may modify their product in terms of size and flavor in the _____ stage of their life cycle. a. maturity b. growth c. introduction d. decline e. downsizing
: idea generation
17. In the new offering development process, the idea-screening stage follows the _____ stage.
E
18. Standardization is typically a. much more costly than keeping the product the same. b. about thinking globally. c. more risky than adaptation. d. more successful than adaptation. e. less costly than adaptation.
B
2. A line extension occurs when a company comes out with another model based on the same _____ and _____ as one of its other products. a. platform; advertising b. platform; brand c. brand; advertising d. marketing mix; offering e. offering; consumers
ATTRACT MANY CUSTOMERS
2. A penetration strategy is utilized because a low price helps _____.
LINE EXTENSION
2. A(n) _____ is a new idea or offering that occurs when a company comes out with another model based on the platform and brand as one of its other products.
B
2. A(n) _____ is utilized to get back the money invested in creating a new product offering. a. investment pricing strategy b. skimming pricing strategy c. cost-based pricing strategy d. penetration pricing strategy e. competitor-based pricing strategy
C
3. In the idea screening stage, companies evaluate new offerings by determining a. if the product cost more during idea generation than expected. b. the product's features. c. if the product fits with the image and corporate strategy. d. the product's specifications. e. if the product works like it is supposed to.
B
3. The stage in the product life cycle when competitors enter the market is known as the _____ stage. a. maturity b. growth c. introduction d. decline e. downsizing
DOWNSIZING
3. _____ involves decreasing the amount of product found in a package
CONCEPT TESTING
3. _____ involves presenting an idea for an offering to consumers for their reaction early in the offering development process.
8-10
4. A focus group consists of _____ people in which they focus on a particular topic.
LOCAL CULTURE
4. Adaptation involves the changes that a firm makes to a product or service so that it fits the _____.
C
4. Downsizing entails a. decreasing the product price. b. decreasing the amount of units sold at a retail location. c. decreasing the size of the package. d. creating a new product line. e. getting rid of a product, service, or business.
D
4. In what stage of the new product development process does concept testing occur? a. launch b. idea generation c. development d. idea screening e. testing
MAKE MONEY
5. A new offering's financial feasibility addresses its ability to _____.
B
5. The stage in the product life cycle when a successful product first becomes profitable is known as the _____ stage. a. maturity b. growth c. introduction d. decline e. downsizing
INTRODUCTION
5. The stage in the product life cycle when sales growth of the product is slow is known as the _____ stage.
E
5. To understand if a product offering is financially feasible, companies often consider the customer's a. potential interest in the product. b. demographics, including income. c. value segmentation. d. price point. e. personal value equation.
SIX MONTHS
6. In the United States, a company is allowed to use the label "new" on a product's package for _____.
MAKE SERVICE
6. Process feasibility refers to the degree to which an organization can actually _____ and ____ an offering.
C
6. The stage in the product life cycle when innovators purchase the product is known as the _____ stage. a. maturity b. growth c. introduction d. decline e. downsizing
A
6. _____ refers to the possibility that the company will fail to earn the appropriate return on the money and effort it puts into the new product. a. Investment risk b. Financial risk c. Opportunity risk d. Innovation risk e. Product risk
SUPPLY; DEMAND
7. Cooperation from a company's supply chain members helps ensure that _____ meets _____ and that value is added throughout the process.
C
7. Heavy costs are associated with the _____ stage of the product life cycle. a. maturity b. growth c. introduction d. decline e. downsizing
B
7. Quality function deployment is a process utilized in which step of the product development process? a. launch b. feature specification c. development d. evaluation e. testing
INVESTMENT RISK
7. _____ refers to the potential of losing one's money and time should a new offering fail.
HIGH; SUBSTANTIAL
8. An organization utilizing a penetration pricing strategy is hoping to sell a(n) _____ volume in order to generate _____ revenues.
E
8. An organization's objectives during the introductory stage often involves a. building on past experience with the product. b. deciding whether the product should be modified. c. developing repositioning strategies. d. evaluating the competitor's products. e. educating potential customers about its value and benefits.
ALTERNATIVE
8. Opportunity risk is the potential loss of revenue a company risks losing when it choose a(n) _____ course of action, such as launching a different offering.
C
8. The feature specifications process begins with a strong understanding of a. what risks are involved. b. what opportunity costs are entailed. c. what consumers want and need. d. what the financial feasibility of the product is. e. what the marketing mix should entail at launch.
C
9. A firm considers the product's manufacturing process during which stage of the product development process? a. launch b. feature specification c. development d. evaluation e. testing
D
9. Firms offering more technical or expensive products often utilize _____. a. billboard campaigns b. mass marketing c. coupons d. personal selling e. sampling
BRAND NAME
9. In the growth stage, emphasizing the advantages of the product's _____ can help a company maintain its sales in the face of competition.
ALPHA TESTING; BETA TESTING
9. _____ involves testing a product in a laboratory setting, while _____ involves testing a product by a real customer.