MKT 493 Ch. 10

The maturity stage of the product lifecycle is characterized by slow-down in sales growth.

true

The total number of product lines makes up the product width.

true

When developing and evaluating concepts, marketing managers must determine how the product will be viewed by consumers and how it will be used.

true

The introduction stage of the product lifecycle is characterized by high competition and a focus on research and development.

false

The late majority tend to be opinion leaders.

false

The maturity stage is rarely the longest stage of the international product lifecycle.

false

The product length is the total number of product lines the company offers.

false

The product width refers to the number of different offerings for a product category.

false

A product may be in the decline stage in one country, and, at the same time, in a maturity stage other countries.

true

Controlled test marketing is limited to a few stores, is thus also less costly, and gives only limited exposure of the product to competition.

true

During the introduction stage of the product lifecycle, products are sold primarily in industrialized countries.

true

During the maturity stage of the international product lifecycle, manufacturing moves overseas.

true

The decline stage of the product lifecycle is characterized by declining sales and profits.

true

The international product life cycle (IPLC) involves a complex relationship between the product life cycle stage and international trade and investment.

true

The ______________________ stage of the new product development process involves developing product prototypes.

Designing and developing the product

The ______________________ stage of the new product development process involves developing a detailed description of the product and asking prospective consumers to evaluate it and to indicate their willingness to purchase the hypothetical product.

Developing and evaluating concepts

During which stage of the international product life cycle does production takes place in the home country or in another industrialized country?

NOT Introduction NOT Growth

During the ___________________ stage, there is a slow-down in sales growth as the product is adopted by most target consumers.

NOT decline

During which stage of the international product life cycle does the company export products to developing countries?

NOT growth

The ________________ is the total number of brands in the product mix.

NOT product width

The ________________ is the total number of product lines the company offers.

Product width

______________________ is limited to a few stores, is thus also less costly, and gives only limited exposure of the product to competition.

controlled test marketing

For products in the _____________________ stage of the product lifecycle, profits are declining, and a firm might consider whether its presence in the market is warranted.

decline

Products in the _____________________ stage of the product lifecycle are rapidly losing ground to new technologies or product alternatives.

decline

During the ______________________ stage of the new product development process, firms determine how the product will be viewed by consumers and how it will be used.

developing and evaluating concepts

These adopters tend to be opinion leaders in their communities who take risks, but with greater discernment than innovators.

early adopters

Continuous innovations create disruption in consumption patterns and often involve new industries or new standards of management.

false

Having an international presence during the decline stage, particularly in developing countries, is a disadvantage.

false

Performing a product business analysis involves developing product prototypes.

false

Price competition becomes intense during the growth stage of the international product lifecycle.

false

Simulated test marketing could create conditions that make the product vulnerable to competitive reactions.

false

The ___________________ stage is characterized by increasing competition and rapid adoption by the market.

growth

The first step in the new product development process is:

idea generation

During the ___________________ stage, firms market products in industrialized countries to consumers who can afford the high prices charged to recover the high investment costs.

introduction

During the ___________________ stage, products are developed in industrialized countries and supported by firms' substantial research and development budgets and by highly skilled product research teams.

introduction

These adopters are the last to adopt new products and do so only in late maturity. In general, they are risk averse and conservative in their spending.

laggards

These adopters are individuals of limited means who are likely to adopt products only if the products are widely popular and the risk associated with buying them is minimal.

late majority

During the ___________________ stage, manufacturing moves to developing countries to save on labor costs.

maturity

During the ___________________ stage, there is a leveling or decline in profits primarily due to intense price competition.

maturity

During which stage of the international product life cycle do local competitors emerge in developing countries and compete with the international corporation in its home country or in other industrialized countries?

maturity

The ___________________ stage is usually the longest stage of the product life cycle.

maturity

______________________ is not as costly and does not give competition much information about the product.

simulated test marketing

The ______________________ stage of the new product development process can provide a good indication of how the product will be received when it is in the market.

test marketing

During the maturity stage of the product lifecycle, manufacturing moves to developing countries to save on labor costs.

true

Innovators are risk takers who can afford to pay higher purchase prices.

true

Products in the decline stage of the international product lifecycle are rapidly losing ground to new technologies or product alternatives.

true

Radical innovations create new industries or new standards of management, manufacturing and servicing.

true