Question_File5_9Dec_2nd

31. What advantage(s) does test marketing offer the marketer?
a. Provides experience before full introductions.
b. Allows testing of the marketing program.
c. Allows testing of positioning, advertising, distribution, and pricing.
d. All of the above.
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e. None of the above.
Bonneville Communications is concerned about test marketing and the possible related
problems. Choose from the following the one item that is not a disadvantage.
f. Test marketing costs can be high.
g. It can take much time to test market.
h. It allows time for competition to spy and gain advantages.
i. People who are surveyed tend to tell less than the truth.
j. B and C
32. Under what circumstances might a company do more than the average amount of 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. All of the above.
33. Although test marketing costs can be high, they are often small when compared with _____.
a. the final results
b. making a major mistake
c. management’s approval and acceptance
d. stockholders’ confidence
e. A and B
34. An attractive idea must be developed into a _____.
a. product idea
b. product concept
c. product image
d. test market
e. none of the above
35. _____ calls for testing new-product concepts with groups of target consumers.
a. Concept development
b. Concept testing
c. Idea generation
d. Idea screening
e. Test marketing
36. 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 goals
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e. idea generation; test marketing; commercialization
37. _____ 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
e. Test marketing
38. In the _____ of new-product development, often products undergo rigorous tests to make
sure that they perform safely and effectively or that consumers will find value in them.
a. business analysis stage
b. idea generation
c. concept development and testing
d. product development phase
e. marketing mix phase
39. Introducing a new product into the market is called _____.
a. test marketing
b. new product development
c. experimenting
d. commercialization
e. none of the above
40. 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 distribution
d. timing of the new product introduction
e. packaging
41. _____ 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
e. Micromarketing
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42.All of the following are limitations of the simultaneous team-based approach to new-product development, except which one?
a. Superfast product development can be riskier than the sequential approach.
b. This approach often creates increased organizational tension and confusion.
c. The objective of this approach is to assure that quality will not be sacrificed.
d. Top management gives the product development team a new idea or work plan.
e. Organizational tension can have a negative impact on employee morale.
43. _____ is the period when sales fall off and profits drop.
a. Introduction
b. Growth
c. Maturity
d. Decline
e. A or D
44. All of the following are accurate descriptions of the life cycle of a style product, except
which one?
a. Style products appear in home, clothing, and art.
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. B or C
45. In the _____, the firm faces a trade-off between high market share and high current profit.
a. growth stage
b. decline stage
c. maturity stage
d. introduction stage
e. commercialization stage
46.The major purpose of test marketing is to provide management with the information
needed to make a final decision about _____.
a. whether to compete in the market
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
47. Following the decision to “time” the introduction of the new product, a company must
decide _____ to launch the new product.
a. where
b. how
c. to what degree
d. why
e. all of the above
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48. Small companies may enter new markets after testing by entering attractive _____.
a. cities
b. regions
c. cities or regions, one at a time
d. distributors or retailers, one at a time
e. none of the above
49. Companies with international distribution systems may introduce new products through this
method. What is the method?
a. Global rollouts.
b. One country at a time.
c. Paired countries with similar markets.
d. Global timing.
e. All of the above.
50.All of the following are potential disadvantages of a sequential product development
approach except _____.
a. product failures
b. lost sales and profits
c. ease of entering competitive markets
d. crumbling market positions
e. all of the above
51. In order to get their new products to market more quickly, many companies are adopting a
faster, team-oriented approach called _____.
a. simulated product development
b. sequential product development
c. simultaneous product development
d. phased-in product development
e. market development
52.The simultaneous product development approach is faster because departments work
closely together through _____.
a. team efforts
b. better planning
c. the help of a consultant
d. cross-functional teams
e. departmentalization
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53. The simultaneous product development approach uses cross-functional teams that overlap
the steps in the process to achieve what goals?
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.
e. B and D
54. It is typical for top management to give the product development team general strategic
directions but no _____ or _____.
a. clear-cut product idea; resource limitation
b. clear-cut product idea; work plan
c. work plan; budget
d. freedom limitation; budget restraints
e. budget; resources
55. The simultaneous team-based approach does have some limitations. Which item does not
fit the list?
a. Superfast product development can be riskier.
b. Superfast product development can be more costly.
c. Superfast product development can create increased organizational tension and
confusion.
d. Superfast product development produces equal or better quality.
e. Superfast product development produces employees with high morale.
56. Companies that get new and improved products to the market faster than their competition
often gain a dramatic _____.
a. first place in the marketplace
b. competitive edge
c. penetration pricing strategy
d. market share
e. none of the above
57. Light Metal Industries has discovered that new product success is hard work and complex. It
actually takes a _____ commitment to succeed.
a. total-company
b. total-department
c. total-management
d. total-employee
e. total-product
58. Which stage of the typical consumer product life cycle is out of place?
a. Product development.
b. Introduction.
c. Maturity.
d. Growth.
e. A and B
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59. This stage in the PLC is characterized by rapid market acceptance, increasing sales, and
increasing profits. What is it?
a. Introduction.
b. Maturity.
c. Growth.
d. Decline.
e. Development.
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60. Which of the following cannot be described by the PLC concept? It is not so obvious.
a. Product class.
b. Product form.
c. Product image.
d. Brand.
e. None of the above.