Chapter 9 Quiz
When Dr. Footcare developed and launched a revolutionary new walking shoe, he knew that during the introductory stage of the product life cycle (PLC) __________.
sales would be slow and profits nonexistent
Which of the following is the most likely circumstance for a company to decide to do little or no test marketing?
when the costs of developing and introducing the product are low
Installing an innovation management system to collect, review, evaluate, and manage new product ideas represents a(n) __________ approach to new product development.
systematic
To succeed in France, McDonalds had to __________.
tailor their operations to local French preferences
What is included in the first part of a marketing strategy statement?
target market description
Which of the following statements regarding the growth stage of the product life cycle is correct?
Companies face a trade-off between high market share and high profits.
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?
Growth
Which of the following statements about new product development strategy is correct?
Innovation can be very expensive and very risky.
If a company finds that a new product concept is acceptable and should be moved forward, what is the next step in the new product development process?
Marketing strategy development
Most products today are in which stage of their product life cycle?
Maturity
________ is the product life cycle period when sales growth slows because the product has achieved acceptance. Profits level off because marketing costs increase in the face of competition.
Maturity
Which of the following would be an appropriate strategy during the maturity stage of the product lifecycle?
Modify the market, product offering, or marketing mix.
Which of the following statements characterizes the introduction stage of the PLC?
Profits are non-existent
Which of the following statements regarding standard test marketing is correct?
Test marketing can be costly and delay commercialization of the product.
Why are customers often considered the most important sources of new product ideas?
The company can analyze customer questions and complaints to find new products that better solve consumer problems.
According to the text, the most successful new products satisfy three criteria. What are these criteria?
They solve a major customer problem, are differentiated, and offer a compelling value proposition.
What must companies do to create successful new products?
Understand its consumers, markets, and competitors and develop products that deliver superior value.
A review of the sales, costs, and profit projections for a new product to find out whether they satisfy the company's objectives is called a ________.
business analysis
During the idea generation stage of the new product development process, it is important that __________.
companies create a large number of ideas
What causes a specific brand's life cycle to change quickly?
competitive attacks and responses
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 __________.
crowdsourcing
The product life cycle presents challenges. Which of the following is LEAST likely to require a company to adapt its marketing strategies?
decreased manufacturing costs
Which of the following stages of the PLC is characterized with the same level or slightly higher level of promotional expenditures in an attempt to respond to increasing competition?
growth
Which of the following is a common reason for new product failure?
incorrect estimation of the market size
Which of the following would lead to greater competition in the maturity stage of the PLC?
overcapacity
