CHPT 9 Quiz
A firm can develop new products or acquire them from other firms. However, innovation can be expensive and very risky. By one estimate, ________ of all new products introduced by established companies fail within two years, and ________ of all innovations fail to return their development costs. A. 50%; 75% B. 33%; 50% C. 66%; 96% D. 25%; 66% E. 33%; 96%
66%; 96%
There are several reasons why new products fail. Which one of the following reasons that has been given for a new product's failure can the marketing manager ignore? A. Incorrect positioning, inaccurate pricing, or poor advertising B. Higher than expected development and marketing costs C. Poor product design D. Competitors legally restricting market entry simply because the product is new E.Overestimation of potential market size
Competitors legally restricting market entry simply because the product is new
There are many legal responsibilities facing the marketing firm. Which of the following is the firm exempt from having to do legally in managing its product offering? A. Following patent laws B. Being prevented from adding products through acquisitions C. Having to legally create product stewards to protect consumers D. Inability to drop all products from the market offering on the firm's decision E. Compliance with consumer product quality and safety laws
Having to legally create product stewards to protect consumers
International product and services marketers face special challenges. First, the firm must figure out what products and services to introduce and in which countries. What is the second issue the firm must address? A. Which countries are financially risky countries B. Which countries do not have laws as strict as the United States C. How to price the products to capture unrealistic profits D. How much to standardize or adapt their products and services E.How to standardize tastes and preferences around the world
How much to standardize or adapt their products and services
In the idea generation stage, firms can generate new product ideas from internal and external sources. Which of the following is an internal source for idea generation? A. Intrapreneurial programs B. Crowdsourcing C. Distributors and suppliers D. Competitors E. Customers
Intrapreneurial programs
One marketing expert describes an R-W-W ("real, win, worth doing") new product screening framework that asks three questions. Two of these are: Is there really a market for the product and can the firm garner a sustainable advantage in the market. Which of the following is the third question the marketer should ask? A. Is there a clear, precise product concept? B. Do we have adequate resources? C. Can we beat the competitors in this market? D. Is it worth doing? E. Is there a real need and desire for the product?
Is it worth doing?
Which stage of PLC typically lasts the longest, and consequently there are more products in this stage of the product life cycle than at any other point in the PLC? A.Decline B. Product development C. Introduction D. Growth E. Maturity
Maturity
Managers of products and services in the maturity stage will use several techniques to extend that stage and not enter the decline stage. Which of the following strategies is essentially impossible for the marketing manager to not employ in order to extend maturity? A. Modification of the market mix B. Modification of the PLC C. Modification of the market by finding new users D. Modification of the market through increased consumption by current users E. Modification of the product
Modification of the PLC
In the fourth stage of the new product development process, the firm creates the marketing strategy statement, which consists of three parts. The final portion of this process is to describe what? A. Sales, market-share, and profit goals for the first few years B. Human resource allocation C. Logistics and operations D. Planned long-run sales, profit goals, and marketing mix strategy E. The product's planned price, distribution, and marketing budget
Planned long-run sales, profit goals, and marketing mix strategy
During which period of the PLC are sales zero? A. Growth B. Introduction C. Decline D. Product development E.Maturity
Product development
The PLC concept can describe several different categories of products of interest to marketers. Which one has the fairly traditional PLC shape and is represented by items such as tablets, wine coolers, and wearable PCs and Internet connections? A.Product class B. Industry C. Product image D. Product form E. Product brand
Product form
As the result of screening, a firm determines there is a market for a device that automatically tosses a ball for a dog so the owner does not have to throw the ball. The firm does not yet know how big the device would be, of what material it would be made, or how much it would cost. The dog-tossing device is described as what level of new product? A. Concept test B. Product market test C. Product image D. Product idea E. Product concept
Product idea
Many entrants to the global marketplace have been driven or "pulled" into the global arena as they followed their client companies that were entering global competition. For which of the following industries is this follow-through behavior most common? A. Gas and oil companies B. Medical services C. Restaurants D. Retailers E.Professional and business services industries, such as accounting, management consulting, and advertising
Professional and business services industries, such as accounting, management consulting, and advertising
In the growth stage, the firm will experience many predictable actions. Which of the following activities is expected in a stage of the product life-cycle other than the growth stage? A. New competitors enter the market. B. Sales experience rapid growth. C. Distribution expands as more outlets carry the product. D. Profits, not market share growth, are important. E. Price remains competitive.
Profits, not market share growth, are important.
If the purpose of idea generation is to create a large number of ideas, what are all the succeeding steps in the new product development process designed to do? A. Develop a crowdsourcing program. B. Reduce the number of generated ideas. C. Source ideas externally. D.Multiply the number of new product ideas the firm has. E. Source ideas internally.
Reduce the number of generated ideas.
Marketing researchers for a new golf glove to be introduced to the golf market measure consumer responses to the product in various fabrics and colors, and styles as well pricing and other marketing tactics in a laboratory "pro shop." Which research method is the firm employing? A. Simulated market laboratory test B. Controlled market test C. Residential test market D. Geographic market test E. Online Internet test market
Simulated market laboratory test
The concept of product life cycle that marketers use presents a challenge because all products eventually decline. Consequently, a firm must be good at developing new products to replace aging ones. This is known as what issue? A.The challenge of new product development B. The challenge that no two products follow the same product life cycle C. The challenge that product life cycle applies only to tangible products D. The challenge of customers being resistant to change and not wanting new products E.The challenge of having to use the same marketing strategies for new products
The challenge of new product development
Which of the following statements about products and services in the decline stage of PLC is accurate? A. Decline is typically the longest stage of the PLC. B. The product must be eliminated immediately when sales and profits drop. C. The product must be repositioned. D. The firm can harvest the product and earn profits in the short term. E. There are many competitors entering the market.
The firm can harvest the product and earn profits in the short term.
Above everything, new product development must be ________ centered, which focuses on finding new ways to solve problems and create more satisfying experiences. A. profit B. customer C. market share D. research and design (R&D) E. scientifically
customer
Options in managing the decline stage vary. A manager can follow several different strategies including drop, ________, or maintain. A. liquidate B. reposition C. reinvigorate D. build E. harvest
harvest
Rather than leaving new products to chance, a company must carry out strong new product planning and set up a systematic, customer-driven new product development process for finding and growing new products. There are eight major steps in this process beginning with ________ and ending with ________. A. concept development; commercialism B. idea screening; commercialization C. idea generation; commercialization D. idea generation; business analysis E. idea generation; test marketing
idea generation; commercialization
The five-stage product life cycle (PLC) defines the ________ stage as the one in which sales slow down because the product has achieved adoption by most potential buyers. Profitability usually levels off. A. decline B. maturity C. growth D. introduction E. product development
maturity
LegalZoom was the first Web site developed to assist consumers in doing legal transactions such as writing wills, getting divorced, and doing simple patent and trademark work online without hiring a lawyer. LegalZoom is a(n) ________ in the industry starting out in the introductory stage of the PLC. A. classic B. fashion C. style D. pioneer E. fad
pioneer
Some PLCs are short and some endure a long time. The PLC for a product class, such as a kilt like the Scottish tartan skirt, lasts for several centuries and is a basic, distinctive mode of expression. The kilt is best described as a(n) ________. A. classic brand B. innovation C. fad D. style E. fashion
style
Many firms do not use a traditional sequential process of new product development that passes the product from department to department. Instead, they use __________ new product development, which assembles people from various departments who stay with the new product from start to finish. Which type of new product development approach is this? A. test-marketing B. product life cycle C. customer-centered D. innovation management system E. team-based
team-based
