MRKT quiz 8

As a result of ________, a company cannot make its product illegally similar to a competitor's already established product. A) anti-monopoly laws B) patent laws C) antitrust laws D) product warranties E) product liability

B

_______ is the stage where a product and its proposed marketing program are introduced into realistic market settings. A) Market strategy development B) Concept testing C) Test marketing D) Concept development E) Business analysis

C

The first part of a marketing strategy statement describes the ________ of a new product. A) planned price B) marketing budget C) marketing mix strategy D) target market E) planned long-run sales

D

The team-based new product development approach saves times because departments work closely together in ________. A) divisional teams B) problem-solving teams C) self-managed groups D) cross-functional teams E) independent groups

D

Which of the following is true of the growth stage of the product life cycle? A) New competitors avoid the market. B) Prices tend to increase significantly. C) Early adopters stop buying the product. D) Profits are nonexistent at this stage. E) Sales start climbing quickly.

E

Customers of a brand are internal sources of new product ideas for the brand.

F

During concept testing, a product is evaluated by management without any input from external sources.

F

Since suppliers are so close to the market, they are valuable sources of information about consumer problems, marketing opportunities, and new product possibilities.

F

The business analysis stage is the final step in the new product development process

F

The stage at which new product and marketing programs are introduced into realistic market settings is called concept testing.

F

A concrete and physical presentation of a product concept is likely to increase the reliability of the concept test.

T

Acquisition is one of the ways through which a company obtains new products

T

In the context of new product development, new products include original products that a firm develops through its R&D efforts.

T

In the new product development process, the purpose of idea generation is to create a large number of ideas, and the purpose of the stages following it is to reduce that number.

T

A product has hit the ________ stage when sales plunge to zero, or they drop to a low level where they continue for many years. A) decline B) growth C) maturity D) ideation E) analysis

A

A product is in the maturity stage of the product life cycle, and the company decides to modify the marketing mix. Which of the following steps is the company most likely to take? A) use aggressive sales promotions B) change features of the product C) improve product quality D) find new uses for the product E) explore new market segments

A

In the ________ stage, a firm most likely faces a trade-off between high market share and high current profit. A) growth B) decline C) maturity D) introduction E) commercialization

A

In which of the following cases is crowdsourcing used for new product development? A) A company creates a forum where anyone can contribute new product ideas. B) A company hires a marketing agency to generate new product ideas. C) A company reviews the sales, costs, and profit projections of an existing product. D) A company depends on its R&D department to come up with new ideas. E) A company partners with a design agency to create a few prototypes.

A

The stage in which a product concept is presented to groups of target consumers physically or symbolically is referred to as ________. A) concept testing B) concept development C) test marketing D) marketing strategy development E) crowdsourcing

A

An innovation management system would most likely be used by ________. A) managers to update details about customer information B) brand managers to collect, review, and evaluate new product ideas C) suppliers to access inventory information D) product managers to track logistics of a new product E) human resource managers to update information on employee incentives

B

In a sequential new product development process, once a product or service passes the business test, it moves into ________. A) concept development B) product development C) test marketing D) strategy development E) commercialization

B

Fads are characterized by their ________. A) enduring nature that spans several generations B) low rates of adoption by consumers C) unusually high sales and rapid decline D) basic and distinctive modes of expression that seldom become unpopular E) non-attainment of the last two stages of the product life cycle

C

Flurrbies, a line of winter accessories by a leading fashion label, quickly fell in and out of favor with customers. Flurrbies represents an example of a(n) ________. A) form B) fashion C) fad D) style E) drift

C

Gershwin, a musical toy for toddlers, is in the maturity stage of the product life cycle, and Gershwin managers have decided to modify the product. What will Gershwin managers most likely do to achieve this goal? A) change distributors B) offer coupons for the toy C) change the packaging of the toy D) launch an online advertising campaign E) cut prices of the toy to attract new customers

C

Hollingsworth is a retail company that is planning to release a new line of luxury personal care products. Its managers are now reviewing the sales history of similar products and conducting marketing surveys to estimate minimum and maximum sales for the product. In which of the following stages of the new product development process is the product? A) test marketing B) idea screening C) business analysis D) marketing strategy development E) concept testing

C

If a product passes both the concept test and the product test, the next step is most likely to be ________. A) marketing strategy development B) product development C) test marketing D) business analysis E) concept development

C

The second part of a marketing strategy statement describes the ________ of a new product. A) marketing mix strategy B) profit goals C) planned price D) target market E) planned value proposition

C

Under a ________ product development approach, one company department works to complete its stage of the product development process before passing the new product along to the next department and stage. A) cross-sectional B) simultaneous C) sequential D) team-based E) systematic

C

________ involves a review of the sales, costs, and profit projections for a new product to find out whether they satisfy a company's objectives. A) Vendor analysis B) Portfolio analysis C) Business analysis D) SWOT analysis E) Concept analysis

C

In a sequential new product development process, which of the following is true of the product development step? A) Product development is usually followed by a business analysis of the product. B) Product development involves introducing a product into realistic market settings. C) Product development avoids testing products on actual customers due to liability concerns. D) Product development is usually followed by test marketing. E) Product development helps top management review profit projections.

D

In the ________ stage of new product development, products undergo rigorous tests to make sure that they perform safely and effectively, or that consumers will find value in them. A) business analysis B) idea generation C) concept screening D) product development E) test marketing

D

Tavera, an automobile company, experienced a significant decline in sales over the last 10 months of its flagship car, Tetra. In response, Tavera reduced its R&D, advertising, and sales expenditures for Tetra in an attempt to improve short-run profits. Which term best describes Tavera's actions with regards to Tetra? A) sales outsourcing B) product modification C) industry repositioning D) product harvesting E) marketing mix modification

D

Under a ________ new product development approach, company departments work closely together in cross-functional groups, overlapping the steps in the product development process to save time and increase effectiveness. A) cross-sectional B) simultaneous C) sequential D) team-based E) systematic

D

Which of the following is a disadvantage of a team-based approach to new product development? A) It lengthens the time required to get the right products to market. B) It involves the use of a rigid, sequential product development approach. C) A bottleneck at one place can seriously hinder the entire project. D) Organizational confusion and tension are likely to affect the process. E) The process is highly ineffective for products with short life cycles.

D

A company's external sources of new product ideas include its ________. A) managers B) salespeople C) engineers D) manufacturing staff E) suppliers

E

In which of the following cases is little or no test marketing most likely recommended for a new product? A) when the product requires a major investment B) when management is unsure of the projected demand for the product C) when the risks associated with introducing the product are high D) when management is unsure of the marketing program for the product E) when the costs of developing and introducing the product are low

E

Which of the following is an internal source of new product ideas for a company? A) trade magazines B) marketing research firms C) government agencies D) competitor's ads E) intrapreneurial programs

E

Which of the following is true about the introduction stage of a new product? A) Profits are typically high. B) Promotion spending is relatively low. C) Less money is needed to attract distributors. D) Companies tend to avoid basic versions of the product. E) Sales growth tends to be slow.

E

Which of the following statements is most likely true about the new product development process? A) The first step in developing a new product involves determining any budgetary or distribution limitations. B) Most firms discourage employees from contributing new product ideas because of legal concerns. C) In most cases, concept testing is followed by concept development. D) A product concept should be developed for each idea before it goes through idea screening. E) Customers, competitors, and suppliers are major sources of new product ideas.

E

With the crowdsourcing approach, a company can estimate the sales volume that a new product will generate.

F

When developing a new product, concept testing should ideally be followed by marketing strategy development.

T

In a sequential new product development process, concept testing is most likely to be followed by ________. A) idea screening B) marketing strategy development C) business analysis D) product development E) test marketing

B

Which statement is most likely true about idea generation in the new product development process? A) Idea generation is most effective when it occurs after idea screening. B) Most companies set a limit for the number of ideas generated to simplify the process. C) Intrapreneurial programs enable customers to contribute to the idea generation process. D) Idea generation is usually followed by procedures that reduce the total number of ideas. E) A company can either develop ideas through internal or external sources but not through both.

D

1) The new product development process usually starts with ________. A) idea screening B) idea generation C) concept development D) concept testing E) market strategy development

B

Parvon, a cleaning product, is in the maturity stage of the product life cycle, and Parvon managers have decided to modify the market. Which of the following steps should Parvon managers most likely take to achieve this goal? A) find new market segments for the brand B) improve the overall quality of the product C) reduce mass media advertising expenses D) offer improved services to new buyers E) conduct controlled test marketing activities

A

The third part of a marketing strategy statement describes the ________ of a new product. A) profit goals B) distribution C) marketing budget D) planned value proposition E) target market

A

Using ________, researchers measure consumer responses to new products and marketing tactics in laboratory stores or virtual online shopping environments. A) simulated test markets B) controlled test markets C) business analysis D) standard test markets E) concept development

A

Wayne Industries, a retail and home improvement store, is developing a new lawnmower. The marketing strategy for the product has already been developed and presented. A prototype has also been developed by the company's R&D team. The prototype is now being tested rigorously to ensure that there are no product liability issues. Once the prototype of the lawnmower passes product tests, the next step is most likely to be ________. A) test marketing B) portfolio analysis C) commercialization D) internal marketing E) business analysis

A

When an end user's problems and experiences define a new product, the approach is called ________. A) customer-centered new product development B) team-based new product development C) sequential product development D) supply/demand new product development E) systematic new product development

A

Which of the following costs is most likely associated with commercialization? A) building or renting a manufacturing facility B) paying groups of consumers for participating in crowdsourcing activities C) determining a product's planned price, distribution, and marketing budget D) developing a prototype of a product E) using simulated tests to measure market capacity

A

Which of the following would most likely have the longest duration in a market and be characterized by several periods of renewed interest? A) a style B) a fashion C) a fad D) a trend E) a drift

A

A product concept is ________. A) the most promising product idea that develops at the brainstorming stage B) a detailed version of a product idea stated in meaningful consumer terms C) the way consumers perceive an actual or potential product D) a detailed strategy to promote the launch of a new product E) a product idea that is generated through crowdsourcing

B

Craft Inc.'s Krayons is a multi-color chalk material that was released in the market over a century ago. Since the release, the company has had remarkable sales and Krayons has remained unchanged. However, over the last few years, sales of Krayons have been stagnant. Competitors have begun marking prices down, and increasing their advertising and sales promotions. Craft's Krayons is most likely in the ________ stage of the PLC. A) introduction B) maturity C) growth D) decline E) incubation

B

In which stage of the product life cycle will promotional expenditures be significantly high in an attempt to create consumer awareness of a product and its features? A) product development B) introduction C) growth D) maturity E) adoption

B

Kallton is a multinational communications and information technology corporation. Its principal products are mobile telephones and tablets. It recently announced on its Web site that customers can suggest ideas for its upcoming product model. Contributors of short-listed ideas will be adequately rewarded. In this case, Kallton is using ________ to generate new product ideas. A) marketing strategy development B) crowdsourcing C) concept development D) business analysis E) test marketing

B

Quest Inc. recently conducted a brainstorming session that generated a large number of ideas for adding new products and services. Quest managers will most likely use ________ next to arrive at a realistic number of ideas to adopt. A) crowdsourcing B) idea screening C) concept testing D) concept development E) business analysis

B

Which of the following steps of the new product development process would most likely use an R-W-W framework? A) idea generation B) idea screening C) concept testing D) test marketing E) commercialization

B

________ is used to study the course of a product's sales and profits for the duration that it is produced and sold in the market. A) A sequential product development process B) A product life cycle C) Business analysis D) Vendor analysis E) Portfolio analysis

B

A ________ is the way consumers perceive an actual or potential product. A) product audit B) product feature C) product image D) product framework E) product concept

C

A company launching a new product must first decide ________. A) where to launch the product B) the sample size of the market C) when to launch the product D) the viability of a global launch E) the budget for print advertising

C

A product life cycle has five distinct stages: product development, introduction, growth, maturity, and ________. A) stabilization B) rebranding C) decline D) progression E) segmentation

C

At Fantastic Flavors, a large regional chain of candy stores, employees from marketing, design, production, and finance departments work in cross-functional groups to save time and money in the new product development process. From this description, it can be inferred that Fantastic Flavors uses a(n) ________ approach. A) intradepartmental new product development B) sequential new product development C) team-based new product development D) simulated test market E) controlled test market

C

Evans and Hills, a beverages manufacturing company, has developed a new line of specialty teas and is seeking regular input from the test marketing process. To facilitate this process, the firm uses BuyerScan, a software that generates store-by-store, week-by-week reports on the actual sales of tested products and the impact of in-store and in-home marketing efforts. Which of the following approaches does this scenario illustrate? A) standard test markets B) inventory tracking C) controlled test markets D) simulated test markets E) direct commercialization

C

When a product hits the ________ stage, profits level off or decline because of increased marketing outlays to defend the product against competition. A) production B) decline C) maturity D) test marketing E) conception

C

Which of the following is most likely true of a product in the maturity stage of the product life cycle? A) Sales are zero, and the company's investment costs mount. B) New competitors enter the market. C) A slowdown occurs in sales growth. D) Sales increase with decreasing competition. E) New distribution channels are acquired.

C

Which of the following is true of the product life cycle (PLC)? A) All products generally go through all five stages of the PLC. B) All products pass through the stages of PLC in the same order. C) It is generally difficult to forecast the sales level at each PLC stage. D) The PLC concept can be applied to styles but not to fashions and fads. E) Product forms have longer life cycles than product classes

C

Internal sources of new product ideas for a company include its ________. A) customers B) distributors C) suppliers D) employees E) competitors

D

Introducing a new product into the market is called ________. A) test marketing B) segmentation C) product development D) commercialization E) market penetration

D

Some companies are now appointing ________, whose job is to protect consumers from harm and the company from liability by proactively ferreting out potential product problems. A) intradepartmental teams B) idea generation teams C) product audit committees D) product stewards E) listening officers

D

Some products that have entered the decline stage can be cycled back to the growth stage through ________. A) concept testing B) test marketing C) sole sourcing D) repositioning E) data mining

D

Which of the following statements is most likely true about the product life cycle? A) Throughout the product introduction stage, sales are zero. B) The growth stage is the longest stage of the product life cycle. C) Profits are nonexistent in the growth stage. D) Growth is a period of rapid market acceptance and increasing profits. E) Maturity is the period when sales fall off but profits continue to rise.

D