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Chapter 8
New-Product Development and Product Life-Cycle Strategies
1. _____ is the development of original products, product improvements, product
modifications, and new brands through the firm’s own R&D efforts.
a.
Idea generation
b.
Concept testing
c.
Test marketing
d.
New product development
2.
All of the following are different ways a firm can obtain new products, except
which one?
a.
By acquiring a whole new company
b.
A firm can obtain a new product through patents
c.
A firm can obtain a new product by licensing someone else's new
product
d.
A firm can obtain a new product by using the R&D department of
other firms in the same industry.
3.
All of the following are accurate descriptions of ways companies are anxious
to learn how to improve the odds of new-product success, except which one?
a.
Find out what successful new products have in common.
b.
To learn lessons from new product failures.
c.
Companies have to learn to understand their own consumers.
d.
Do not overly rely on product innovation when you can succeed by
copying others.
4.
_____ is the systematic search for new-product ideas.
a.
Idea generation
b.
Idea screening
c.
Concept development and testing
d.
Marketing strategy development
5.
Major sources of new product ideas include _____.
a.
internal sources, using company R&D
b.
creative approaches, using both "method and madness" approaches
c.
watching and listening to customers
d.
all of the above are sources of new product ideas
6.
The purpose of _____ is to generate a large number of ideas.
a.
idea screening
b.
idea generation
c.
concept development and testing
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d.
marketing strategy development
7.
The first idea reducing stage is _____ , which helps spot good ideas and drop
poor ones as soon as possible.
a.
idea generation
b.
idea screening
c.
concept development and testing
d.
marketing strategy development
8.
A _____ is the way consumers perceive an actual or potential product.
a.
product idea
b.
product concept
c.
product image
d.
test market
9.
_____ calls for testing new-product concepts with groups of target consumers.
a.
Concept development
b.
Concept testing
c.
Idea generation
d.
Idea screening
10.
The marketing strategy statement in new product development consists of
three parts: _____, _____, and _____.
a.
idea generation; idea screening; concept development
b.
idea generation; concept development; concept testing
c.
idea generation; idea screening; idea management
d.
target market description; planned product positioning; sales, market
share, and profit goals for the first few years.
11.
_____ involves a review of the sales, costs, and profit projections for a new
product to find out whether they satisfy the company's objectives.
a.
Idea generation
b.
Idea screening
c.
Business analysis
d.
Concept development and testing
12.
Once management has decided on a product concept and marketing strategy, it
can next evaluate the _____ of the proposal.
a.
product idea portion
b.
product development part
c.
business attractiveness
d.
commercial viability
13.
_____ is the stage of new-product development in which the product and
marketing program are tested in more realistic market settings.
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a.
b.
c.
d.
Business analysis
Idea generation
Test marketing
Marketing strategy development
14.
Introducing a new product into the market is called _____.
a.
test marketing
b.
new product development
c.
experimenting
d.
commercialization
15.
A company getting ready to launch a new product must make several
decisions. However, 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 or international
distribution
d.
timing of the new product introduction
16.
_____ 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
17.
In order to get their new products to market more quickly, many companies
are adopting a faster, team-oriented approach called _____.
a.
sequential product development
b.
simultaneous product development
c.
commercialization
d.
introduction timing
:
All of the following statements are accurate descriptions of the simultaneous
product development approach to new product development, except which
one?
a.
The simultaneous product development approach is also known as
collaborative product development.
b.
Company departments work closely together through cross-functional
teams.
c.
Companies assemble a team of people from various departments that
stay with the new product from start to finish.
d.
Companies often pass the new product from department to department
in each stage of the process.
18.
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19.
_____ begins when the company finds and develops a new-product idea.
During product development, sales are zero and the company's investment
costs mount.
a.
Introduction
b.
Growth
c.
Maturity
d.
Product development
20.
_____ is a period of slow sales growth as the product is introduced into the
market. Profits are non-existent in this stage because of the heavy expenses of
product introduction.
a.
Growth
b.
Product development
c.
Maturity
d.
Introduction
21.
_____ is a period of market acceptance and increasing profits.
a.
Product development
b.
Maturity
c.
Growth
d.
Introduction
22.
_____ is the course of a product's sales and profits over its lifetime, involving
five distinct stages: product development, introduction, growth, maturity, and
decline.
a.
Product life cycle
b.
Maturity
c.
Growth
d.
Decline
23.
_____ is the period when sales fall off and profits drop.
a.
Introduction
b.
Growth
c.
Maturity
d.
Decline
24.
All of the following are accurate descriptions of the product life cycle concept,
except which one?
a.
The PLC concept can describe a product class.
b.
The PLC concept can describe a product form.
c.
The PLC concept can describe a brand.
d.
Product forms tend to have the longest life cycles.
25.
All of the following are accurate descriptions of the life cycle of a style
product, except which one?
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a.
b.
c.
d.
Style products appear in homes, clothing, and art.
Once a style is invented, it may last for generations.
A style has a cycle showing several periods of renewed interest.
Styles last only a short time and tend to attract only a limited
following.
26.
_____ are fashions that enter quickly, are adopted with great zeal, peak early,
and decline very quickly.
a.
Fashion
b.
Fads
c.
Styles
d.
Mature products
27.
The product life-cycle stage in which the new product is first distributed and
made available for purchase is called the _____.
a.
maturity stage
b.
growth stage
c.
introduction stage
d.
decline stage
28.
All of the following are characteristics of the introduction stage of the PLC,
except which one?
a.
Profits are usually negative or low because of low sales.
b.
Profits are usually negative or low because of high distribution and
promotion expenses.
c.
Lots of money is needed to attract distributors and build inventories.
d.
Educating the market remains a goal, but now the company must also
meet the competition.
29.
If the new product satisfies the market, it will enter a(an) _____, in which
sales will start climbing quickly.
a.
introduction stage
b.
growth stage
c.
maturity stage
d.
decline stage
30.
Profits increase during the _____ as promotion costs are spread over a large
volume and as unit manufacturing costs fall.
a.
introduction stage
b.
decline stage
c.
maturity stage
d.
growth stage
31.
In the ____, the firm faces a trade-off between high market share and high
current profit.
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a.
b.
c.
d.
growth stage
decline stage
maturity stage
introduction stage
32.
The product life-cycle stage, in which sales plunge to zero or drop to a low
level at which they continue for many years, is the _____.
a.
introduction stage
b.
growth stage
c.
maturity stage
d.
decline stage
33.
Management must decide whether to maintain, harvest, or drop aging products
in the _____ of the PLC.
a.
introduction stage
b.
growth stage
c.
maturity stage
d.
decline stage
34.
All of the following are characteristics of the decline stage of the PLC, except
which one?
a.
As sales and profits decline, some firms withdraw from the market.
b.
Some firms prune their product offerings.
c.
Some firms drop smaller market segments and marginal trade
channels.
d.
Some firms modify the market.
35.
In the _____ of the PLC, marketers use increased sales promotion to
encourage brand switching.
a.
introduction stage
b.
product development stage
c.
growth stage
d.
maturity stage
ANSWER
1-5 d d d a d
11-15 c c c d d
21-25 c a d d d
31-35 a d d d d
6-10 b b c b d
16-20 c b d d d
26-30 b c d b d
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