Marketing Test Bank Chapter 9 New Product Development and Product Life Cycle Strategies

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Chapter 9 New-Product Development and Product Life-Cycle Strategies

1) What are the two ways that a company can obtain new products?

A) line extension and brand management

B) internal development and brand management

C) new-product development and acquisition

D) service development and product extension

E) market mix modification and research and development

3) Which of the following is NOT a potential reason for a new product to fail?

A) an underestimated market size

B) a poorly designed product

C) an incorrectly positioned product

D) higher than anticipated costs of product development

4) Which of the following is NOT a challenge presented by the product life cycle that a firm must face?

A) All products eventually decline

B) Changing tastes, technologies, and competition affect the marketing of the product as it passesthrough lifecycle stages

C) A firm must be good at developing new products to replace aging ones

D) A firm must be good at adapting its marketing strategies

E) It is difficult to plot the stages as a product goes through them

Answer: E

Skill: Concept

Objective: 9-1

5) The creation of a successful new product depends on a company's understanding of its

and its ability to deliver to customers

A) competitors, distributors, and employees; new styles

B) customers, brands, products; product images

C) customers, competitors, and markets; superior value

D) product, marketing mix, and marketing strategy; functional features

E) product life cycle, legal responsibilities, and social responsibilities; innovations

7) Executives, manufacturing employees, and salespeople are all examples of

A) external sources for new-product ideas

B) internal sources for new-product ideas

C) core members of innovation management systems

D) research and development team members

E) new-product committee members

8) Your company decides to use internal sources for developing new product ideas Which of thefollowing would NOT be consulted?

A) executives and professionals

B) company records and data

D) trade magazines, shows, and seminars

E) distributors and suppliers

A) analyzing customer complaints and questions

B) relying heavily on customers to know what types of technical products they need

C) working alongside customers to get ideas and suggestions

D) turning customers into cocreators

E) putting customer-created products on the market

D) trade shows and magazines

E) the firm's executives

Answer: E

Skill: Concept

Objective: 9-2

12) The purpose of idea generation is to create a number of ideas The purpose of succeeding stages is to that number.

A) small number; reduce

B) small number; increase

C) large number; increase

D) large number; reduce

E) limited number; sustain

new-A) the proposed customer value proposition

B) the product image

C) the marketing strategy

D) the business analysis

E) the planned marker rollout

Answer: A

Skill: Concept

Objective: 9-2

15) A detailed version of a new idea stated in meaningful customer terms is called a .A) product idea

19) In the concept testing stage of new-product development, a product concept in form is presented to groups of target consumers.

23) The first part of the marketing strategy statement describes the target market; the planned product positioning; and goals for sales, profits, and .

A) business feasibility plan

B) marketing strategy development

27) During which stage of new-product development will management most likely estimate minimum and maximum sales to assess the range of risk in launching a new product?

A) conducting surveys of competitors

B) considering the history of market opinions

C) considering the sales history of similar products and conducting surveys of market opinionsD) applying the PLC concept

E) none of the above

Answer: C

Skill: Concept

Objective: 9-2

30) Once the product or service passes the business analysis test, it moves into what stage?A) concept development

A) Test marketing costs can be high

B) It can take a lot of time to test market

C) Test marketing allows time for competitors to spy and gain advantages

D) People who are surveyed tend to tell less than the truth

E) Test marketing does not guarantee success

Answer: D

Skill: Concept

Objective: 9-2

34) Under what circumstances might it be wise for a company to do little or no test marketing?A) when a new product requires a major investment

B) when management is not sure of the product

C) when management is not sure of the marketing program

D) when the product has no substitutes and is new in its category

E) when the costs of developing and introducing the product are low

A) the final results

B) the costs of a major mistake

C) management's approval and acceptance

37) The major purpose of test marketing is to provide management with the information needed

to make a final decision about

A) how to develop a market strategy

B) which market to compete in

C) whether to launch the new product

D) how to compete in the market

E) how long to compete in the market

Answer: C

Skill: Concept

Objective: 9-2

38) Introducing a new product into the market is called

A) building or renting a manufacturing facility

B) paying groups of target customers for product feedback

C) determining the product's planned price, distribution, and marketing budget

D) developing a prototype of the product

E) identifying target markets

Answer: A

Skill: Concept

Objective: 9-2

40) A company getting ready to launch a new product must make several decisions The

company must first decide on

A) whether to launch the product in a single location

B) whether to launch the product in a region

C) whether to launch the product into full national distribution

D) when to time the new product introduction

E) when to develop a planned market rollout

42) Which of the following is necessary for successful new-product development?

A) a holistic and sequential product development approach

B) a customer-centered, team-based, systematic approach

C) a team-based, innovation-management approach

D) a market pioneer mindset and a holistic approach

E) an innovation management system and sequential product development

C) customer-centered new-product development

D) sequential product development

E) team-based new-product development

Answer: C

Skill: Concept

Objective: 9-2

44) is a new-product development approach in which one company department works

to complete its stage of the process before passing the new product along to the next department and stage

A) Team-based product development

B) Simultaneous product development

C) Sequential product development

D) Product life-cycle analysis

A) simulated new-product development

B) sequential product development

C) team-based new-product development

D) phased-in new-product development

46) The team-based new-product development approach is faster because departments work closely together through .

A) save time and reduce errors

B) save time and increase effectiveness

C) increase effectiveness and employee satisfaction

D) speed product to market and reduce costs

A) It takes longer to get the right products to market

B) The development effort is not as effective because of team members' lack of expertise

C) Levels of risk can be more easily controlled

D) Organizational confusion and tension can affect the process

E) The process does not work with the shorter life cycles of many of today's products

49) The innovation management system approach yields two favorable outcomes: it helps create

an innovation-oriented company culture, and it

A) clearly assigns responsibility for the process

B) yields a larger number of new-product ideas

C) guarantees successful products

D) frees up senior management time

E) requires less budget support

53) Which stage in the PLC is characterized by rapid market acceptance and increasing sales?A) introduction

57) Which of the following CANNOT be described using the PLC concept?

B) Once a style is invented, it may last for generations

C) A style has a cycle showing several periods of renewed interest

D) Styles last only a short time and tend to attract only a limited following

E) Styles are basic and distinctive modes of expression

A) to forecast product performance

B) to develop marketing strategies

C) products and markets work

D) concept testing is conducted

E) product ideas are developed

61) In which stage of the PLC will promotional expenditures be especially high in an attempt to create consumer awareness?

64) Which stage in the PLC normally lasts longer and poses strong challenges to the marketing managers?

67) When a product enters the maturity stage, the company should consider

A) harvesting the product

B) modifying the product, market, or marketing mix

C) divesting the product

D) maintaining the product

E) dropping the product

Answer: B

Skill: Concept

Objective: 9-3

68) Sales decline in the decline stage of the PLC because of technological advances, increased competition, and .

A) shifts in the economy

A) maintain or harvest the product

B) harvest or drop the product

C) maintain, harvest, or drop the product

D) maintain or pioneer the product

E) pioneer, harvest, or maintain the product

A) harvest the product

B) maintain the product without change

C) drop the product

D) search for replacements

AACSB: Ethical Reasoning

Skill: Concept

Objective: 9-4

72) Because of , a company cannot make its product illegally similar to a competitor's already established product.

AACSB: Ethical Reasoning

Skill: Concept

Objective: 9-4

73) Which of the following best describes the role of a product steward?

A) to protect consumers from harm

B) to evaluate new-product ideas against a set of general criteria

C) to develop a new-product concept into a physical product

D) to protect the company from liability by identifying and solving potential product problemsE) A and D

Answer: E

AACSB: Ethical Reasoning

Skill: Concept

Objective: 9-4

74) The advantages of standardizing an international product include all of the following

EXCEPT

A) the development of a consistent image

B) lower product design costs

C) the adaptation of products to different markets

D) decreased manufacturing costs

E) lower marketing costs

Answer: C

Skill: Concept

Objective: 9-4

75) Because names, labels, and colors may not easily translate from one country to another, international marketers must carefully assess .

AACSB: Multicultural and Diversity

Skill: Concept

Objective: 9-4

76) Your firm added three new products earlier this year to increase variety for customers Two

of them failed to reach even minimal sales Which of the following is LEAST likely to have beenthe cause of their failure?

A) The products were priced too high

B) The products were advertised incorrectly

C) Competitors fought back harder than expected

D) Research was too extensive

E) The product launch was ill-timed

Answer: D

AACSB: Analytic Skills

Skill: Application

Objective: 9-1

77) Which of the following is the most likely reason that employees at your firm regularly attendtrade shows and seminars?

A) to analyze the product life cycle

B) to test new-product concepts

C) to get new-product ideas

D) to test market new products

E) to implement a team-based new-product development approach

Answer: C

AACSB: Analytic Skills

Skill: Application

Objective: 9-2

78) Which of the following statements best explains why idea screening may be the most import step of new product development?

A) It increases the number of ideas generated

B) Some potentially profitable ideas may be ill perceived by the idea screeners

C) Some ideas that will become market disasters may be originally viewed favorably by the idea screeners

D) It gives research and development team members an opportunity to gather consumer

feedback

E) It saves the company money in product development costs by giving the green light to only the product ideas that are likely to be profitable

Answer: E

AACSB: Analytic Skills

Skill: Application

Objective: 9-2

79) JoAnn Fabrics, Inc., has just created a new combination of colors and fabric types The firm wants to be sure of the way consumers perceive its new product The firm is concerned with the product

AACSB: Reflective Thinking

Skill: Application

Objective: 9-2

80) Which of the following is a product concept?

A) a battery-powered all-electric car

B) a pocket-size digital music player

C) an energy efficient humidifier

D) a thin, lightweight laptop with extended battery life appealing to students and young

professionals who want access to their computer anywhere, anytime

E) a high-tech, stylish running shoe with built-in sensors to record the distance the wearer has walked or run

Answer: D

AACSB: Reflective Thinking

Skill: Application

Objective: 9-2

81) Wainwright Industries will build a new prototype riding lawnmower especially for women

In the product development stage, Joe Wainwright and his staff will incorporate the functional features and convey the

AACSB: Reflective Thinking

Skill: Application

Objective: 9-2

82) Skippy Peanut Butter has a new peanut butter and bacon product and finds a small number ofrepresentative test cities They plan to use the results to forecast national sales and profits Skippy is using

A) controlled test markets

B) simulated test markets

C) standard test markets

D) random test markets

E) single-city test markets

Answer: C

AACSB: Reflective Thinking

Skill: Application

Objective: 9-2

83) Anita's DayCare plans to offer third-shift childcare, based upon the opening of two new manufacturing plants in her area Together the plants will hire 423 employees and run all three shifts Initial test marketing results look promising In considering launching this new service, Anita must first decide on

A) timing

B) expansion costs

C) hiring suitable employees

D) checking local and state regulations

E) food costs

Answer: A

AACSB: Reflective Thinking

Skill: Application

Objective: 9-2

84) Atlas Steel Corporation lacks the confidence, capital, and capacity to launch its new steel product into full national or international distribution Even though test market results look promising, what will be management's next step?

A) retest the product in additional markets

B) develop a planned market rollout over time

C) secure a loan to provide confidence, capital, and capacity

D) seek the help of a nationally known consultant

E) develop a prototype

Answer: B

AACSB: Reflective Thinking

Skill: Application

Objective: 9-2

85) At Fantastic Flavors, a large regional chain of candy stores, employees from marketing, design, production, and finance work in a cross-functional group to save time and money in the new-product development process Fantastic Flavors uses a(n) approach

A) customer-centered new-product development

B) sequential new-product development

C) team-based new-product development

D) innovation management system

E) consumer composite

Answer: C

AACSB: Reflective Thinking

AACSB: Reflective Thinking

Skill: Application

Objective: 9-3