Question_File5_9Dec

1. Every product seems to go through a life cycle. Which of the following is not a major
challenge presented by the PLC?
a. All products eventually decline.
b. A firm must be good at developing new products to replace aging ones.
c. The firm must be good at adapting its marketing strategies.
d. It is difficult to plot the stages as a product goes through the stages.
e. C and D
2. Products may fail because _____.
a. the market size may have been overestimated
b. the product’s design did not meet consumer expectations
c. they were priced too high
d. they were advertised poorly
e. any of the above
3. A company can obtain new products through new product development. Which of the
following define(s) new products?
a. Original products.
b. Product improvements.
c. Product modification.
d. All of the above.
e. None of the above.
4. New products fail at a disturbing rate. Research estimates that _____ of all new products fail
within two years.
a. 60 percent
b. 70 percent
c. 80 percent
d. 90 percent
e. 95 percent
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5. New product development starts with _____.
a. idea generation
b. idea screening
c. concept development
d. concept testing
e. test marketing
6. Your company decides to use internal sources for developing new product ideas. Which of
the following would not be a common internal source?
a. Questioning executives and professionals.
b. Company records and data.
c. Encouraging intrapreneurism.
d. Privileged information.
e. Past sales numbers.
7. A _____ is the way consumers perceive an actual or potential product.
a. product idea
b. product concept
c. product image
d. test market
e. concept test
8. H. J. Heinz Company developed its successful new line of ketchup by observing and listening
to its _____.
a. employees
b. sales force
c. customers
d. suppliers
e. competitors
9. Some companies give customers the tools and resources to design their own _____.
a. advertising campaigns
b. products
c. product modifications
d. product applications
e. shelves
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10. At this point your firm wants to use external sources for new product ideas. After consulting
with a friend you learn that all of the following are common sources except _____.
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a. customers
b. suppliers
c. competitors
d. government agencies
e. B and C
11. How could you use competitors as a choice of external new product ideas?
a. Buy one of their products.
b. Analyze their sales.
c. Dismantle one of their products.
d. All of the above.
e. None of the above.
12. Top management can install a(n) _____ to direct the flow of new ideas to a central point
where they can be collected, reviewed, and evaluated.
a. idea evaluation system
b. idea management system
c. database
d. MIS
e. data processing system
13. The search for new-product ideas should be _____ rather than haphazard.
a. consistent
b. systematic
c. continual
d. strategically planned
e. seldom
14. The purpose of idea generation is to create a _____ 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. small number; maintain
15. GrayBerry Gifts has just brainstormed a large number of ideas for adding new products and
services after visiting several buying fairs. The owners will begin the first idea-reducing stage
called _____ to arrive at a realistic number to adopt.
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a. idea generation
b. idea screening
c. product concept
d. concept development
e. idea dissemination
16. What do we call a detailed version of a new idea stated in meaningful customer terms?
a. Product idea.
b. Product concept.
c. Product image.
d. Product proposal.
e. Product movement.
17. 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 an actual or potential product called
product _____.
a. idea
b. concept
c. image
d. proposal
e. presentation
18. When developing new products, it is important for a firm to distinguish between a product
concept, a product image, and a product _____.
a. idea
b. proposal
c. life-cycle
d. all of the above
e. none of the above
19.
20. With what groups do firms conduct concept testing for new products?
a. Suppliers.
b. Employees.
c. Target customers.
d. Focus groups.
e. Competitors.
21. For some concept tests, a simple description consisting of a _____ might be sufficient.
a. word
b. picture
c. word or picture
d. narrative
e. B or D
22.Many firms routinely test new product concepts with consumers before attempting to
_____.
a. commercialize them
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b. turn them into actual new product
c. price them
d. create advertising and promotion
e. develop them
23. After concept testing, a firm would engage in this stage in developing and marketing a new
product.
a. Idea screening.
b. Marketing strategy development.
c. Business analysis.
d. Product development.
e. Test marketing.
24. The first part of the marketing strategy describes the target market, the planned product
positioning, the sales, profit goals, and _____.
a. market share
b. the competition
c. the secondary market
d. the competition’s anticipated reaction
e. life-cycle duration
25. The second part of the marketing strategy statement outlines the product’s planned price,
distribution, and _____ for the first year.
a. advertising
b. promotion
c. marketing budget
d. positioning
e. none of the above
26. Grant Tours will include all of the following in the third part of the marketing strategy
statement except _____.
a. long-run sales
b. profit goals
c. marketing mix strategies
d. short-run sales
e. A and C
27. A review of the sales, costs, and profit projections for a new product to find out whether
they satisfy the company’s objectives is called a _____.
a. business feasibility
b. feasibility study
c. business analysis
d. product acceptance
e. proposal
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(New World Releases is conducting a business analysis to determine which of the many new
songs available to management should be released. Sales must be first estimated before costs
can be estimated. Which of the following did your text recommend for forecasting sales?
f. Compare the sales history of similar products.
g. Conduct surveys of market opinions.
h. Compare the sales history of similar products and conduct surveys of market opinions.
i. All of the above.
j. None of the above.
28. Once the product or service passes the business analysis test, it moves into what stage?
a. Concept development.
b. Product development.
c. Market testing.
d. Research and developing.
e. Product proposal.
29.During product development which group or department develops the product into a
physical product?
a. Research and development.
b. Engineering.
c. Production.
d. None of the above.
e. A or B
30.Once Wainwright Industries’ new riding lawnmower made especially for women passes
functional and consumer tests, the next step is _____.
a. test marketing
b. focus group surveys
c. commercialization
d. post-testing
e. none of the above