chapter 11

Question 1

Which of the following factors drive the need for new product development?

A) Stable market conditions
B) Static consumer preferences
C) Inactive competitors
D) Advances in science

Answer 1

D. -Markets are constantly evolving
-Consumer preferences change
-Competitors are innovating
-Advances in science

Question 2

Which of the following factors contribute to the necessity for new product development?

A) Static market conditions
B) Unchanging consumer preferences
C) Stagnant technological advancements
D) Evolving consumer preferences

Answer 2

D. - Markets are constantly evolving
- Consumer preferences change
- Competitors are innovating
- Advances in science

Question 3

Which of the following are examples of new product categories?

A) Repositioned products
B) Lower priced products
C) Improvements over existing products
D) New to the world
E) Established product lines

Answer 3

D

Question 4

Which type of new product development involves creating products that have never been seen before?

A) Additions to existing product lines
B) Lower priced products
C) Improvements over existing products
D) New to the world
E) Repositioned products

Answer 4

D

Question 5

Which strategy involves expanding a company’s product offerings within an existing category?

A) Repositioned products
B) Lower priced products
C) New product lines
D) Improvements over existing products
E) New to the world

Answer 5

C

Question 6

Which approach to new product development involves changing the target market or positioning of an existing product?

A) Improvements over existing products
B) New product lines
C) Repositioned products
D) Additions to existing product lines
E) Lower priced products

Answer 6

C

Question 7

Which strategy focuses on introducing products with reduced pricing compared to existing offerings?

A) Repositioned products
B) Lower priced products
C) New to the world
D) Additions to existing product lines
E) Improvements over existing products

Answer 7

B

Question 8

What type of new product development aims to enhance the features or quality of existing products?

A) New product lines
B) New to the world
C) Additions to existing product lines
D) Improvements over existing products
E) Lower priced products

Answer 8

D

Question 9

New-to-the-world products, where the product category itself is new, are also called:
a. discontinuous innovations
b. moderate innovations
c. slow-diffusing products
d. venture products
e. creative offerings

Answer 9

A

Question 10

A product must be a discontinuous innovation to be considered a “new” product

Answer 10

T

Question 11

Central Bark is a dog day care center. When you check your dog into a Central Bark you know your pooch will be pampered. Since kennels have been boarding dogs for years, the dog day care is not really a new product.

Answer 11

F

Question 12

The development of a garlic-butter flavored crescent rolls by Pillsbury would not be considered a
new product since the company was already making crescent rolls. It would simply be called a
line extension.

Answer 12

F. Additions to existing product lines. Line extensions are considered to be a type of new product.

Question 13

Which of the following would be considered a new product?
a. new product lines
b. new-to-the-world product
c. addition to existing product lines
d. improvements or revisions to existing
products
e. all of these choice

Answer 13

E

Question 14

Sony has developed a wireless speaker that sits unobtrusively on a desktop. The tiny, yet strong
twin speakers use Bluetooth to stream music directly from your PC or MP3 player. This small
Sony wireless speaker, which is radically different from anything currently on the market, would
be classified as a(n):
a. discontinuous innovation
b. slow-diffusing product
c. episodic innovation
d. venture product
e. sporadic innovation

Answer 14

A

Question 15

Which term describes the launch of products that no other company has ever made?

A) Repositioned products
B) Incremental innovations
C) Continuous innovations
D) New to the world

Answer 15

D

Question 16

Which term best describes products that are launched as entirely new innovations?

A) Repositioned products
B) Continuous innovations
C) Discontinuous innovations
D) Incremental innovations

Answer 16

C

Question 17

When Procter & Gamble wanted to enter the hair care market, it purchased Wella, a leading
German company specializing in hair care products. What new product category does this
acquisition represent for P&G?
a. repositioning strategy
b. new product line
c. addition to an existing product line
d. discontinuous innovation
e. revision to existing products

Answer 17

B

Question 18

Victorinex has long manufactured Swiss Army knives and developed a line of upscale Swiss
Army watches. The Swiss Army brand gave the company credibility over other watch
manufacturers and allowed the company to continue targeting sports-minded males between the
ages of 18 and 35. Victorinex used which strategy to create new products?
a. new-to-the-world product
b. new product line
c. repositioned product
d. addition to a current product line
e. discontinuous innovation

Answer 18

B

Question 19

The pedometer is getting kicked up a notch with the new Fitbit device. The Fitbit is a $99
motion-detecting sensing device that can measure the user’s activity even when asleep. It
digitally records the distance a user walks or runs, right down to the number of steps, and calories
burned. The device wirelessly sends data to its Web site, fitbit.com, giving users minute-byminute details. Users can add consumption information at the Web site, allowing an accurate
picture of calorie consumption and expenditures. Unlike other devices, like the Nike + iPod
Sport Kit that monitors walking and running and sells for $29 or the Zeo Personal Sleep Coach
that records brainwaves while the user is sleeping and sells for $399, the Fitbit combines both
functions. The first-time Fitbit setup isn’t very easy for users, but once over that hurdle, it’s
relative easy to use.
Refer to Fitbit. The company marketing the Fitbit does not currently market a product like this.
Which of the following best represents the category of new product the Fitbit is for this company?
a. new-to-the-world product
b. new product line
c. additions to existing product lines
d. repositioned product
e. incremental product

Answer 19

B

Question 20

Which statement accurately describes “New-to-the-world products” or “Discontinuous Innovations”?

A) They are incremental improvements over existing products.
B) They often enter an already saturated market.
C) They are introduced in an original form, creating an entirely new market.
D) They primarily aim to replicate existing products with minor adjustments.

Answer 20

C

Question 21

Which statement accurately describes “New Product Lines”?

A) They are products that are entirely new to the market.
B) They aim to replicate existing products with minor adjustments.
C) They are introduced in an original form, creating a new market.
D) They are products the firm has not offered in the past but will introduce into an established market.

Answer 21

D

Question 22

Which of the following statements accurately describes “New Product Lines”?

A) These products are entirely new to the market.
B) They are only offered by the company introducing them.
C) They are new to the company but offered by other companies.
D) They decrease the “width” of the product mix.

Answer 22

C

Question 23

What characterizes “New Product Lines”?

A) They are introduced by multiple companies simultaneously.
B) They are only offered by the company introducing them.
C) They increase the diversity of products offered by the company.
D) They have been in the market for a long time.

Answer 23

C. Increasing the width in the product mix

Question 24

Which term best describes products that are new to a company but are already available in the market?

A) Incremental innovations
B) New to the world
C) New product lines
D) Discontinuous innovations

Answer 24

C

Question 25

What effect do “New Product Lines” have on the company’s product mix?

A) They narrow the product mix’s diversity.
B) They have no impact on the product mix.
C) They decrease the company’s market presence.
D) They increase the “width” of the product mix.

Answer 25

D

Question 26

Which of the following is a potential benefit of introducing “New Product Lines”?

A) Opportunity to focus solely on existing products
B) Reduced need for market research
C) Opportunity to diversify risks
D) Increased competition from existing products

Answer 26

C

Question 27

When Glade brand air freshener began marketing a clean linen-scented air spray, this represents
which new product category?
a. repositioning strategy
b. new product line
c. addition to an existing product line
d. discontinuous innovation
e. revision to existing products

Answer 27

C

Question 28

Heinz is expected to introduce more than 400 new products in the next two years. One of the
products is a spicier ketchup aimed at the baby boomer market. The spicier ketchup would be
considered what type of new product?
a. discontinuous innovation
b. new-to-market
c. new product line
d. lower-priced products
e. addition to existing product line

Answer 28

E

Question 29

Oakley, a manufacturer of protective eyewear for various kinds of sports, has introduced
sunglasses that play music. The glasses weigh just a few ounces and can hold up to 120 songs.
These sunglasses would be an example of a(n):
a. repositioning strategy
b. new product line
c. addition to an existing product line
d. discontinuous innovation
e. revision to existing products

Answer 29

C. The new sunglasses supplement the firm’s established product line

Question 30

Finland-based Rapala VMC Corporation is the world’s largest fishing lure manufacturer. It
developed its first fishing lure–a cigar-shaped minnow–in 1962. The annual market for fishing
lures in terms of retail sales is approximately $600 million. Rapala VMC garnered one-third of
that amount in 2008. New lures must be introduced each year in order to stay competitive in this
industry. Like other lure manufacturers, Rapala focuses on two questions in developing and
making new lures: Does it work, and does it look good? Developing a new lure takes two or three
years and involves extensive field testing by tournament professionals and fishing guides. At the
annual fishing industry trade show in 2008, Rapala unveiled the “dream lure for the 21st century.”
101. Refer to Rapala. The “dream lure for the 21st century will more than likely be an example of a(n):
a. new product line
b. addition to existing product line
c. discontinuous innovation
d. improvement to existing product
e. repositioned product

Answer 30

B

Question 31

Hewlett-Packard is the number one seller of personal computers worldwide. The company has
been increasingly more creative in their computer designs following the trend set by Apple Inc.
Hewlett-Packard has created a ultra thin laptop called the Voodoo Envy. The laptop is less than a
half inch thick and weights less than 3 1/2 pounds. It is priced at $2000. HP created the laptop to
compete against Apple’s MacBook Air and a model created by the Lenovo Group Ltd. Both these
models were priced at around $3000. The MacBook Air does not have removable batteries or a
built-in socket for plugging into Ethernet networks. HP’s Voodoo envy does have removable
batteries and offers an Ethernet port that is part of its power adapter. The Voodoo can also be
booted up in less than five seconds made possible by software developed by HP.
114. Refer to Voodoo Envy. Even though HP offers other laptop computers, the Voodoo Envy is HP’s
first entry into the ultrathin computer market. It is not really an update of an existing laptop.
Instead, it was originally designed as an ultrathin laptop. As such it is an example of a _____.
a. new-to-the-world product
b. new product line
c. addition to existing product lines
d. repositioned product
e. improvement or revision of existing products

Answer 31

C

Question 32

Which of the following statements accurately describes “Additions to existing product lines”?

A) They decrease the diversity of products offered by the company.
B) They do not appeal to any new customer segments.
C) They are entirely new innovations introduced by the company.
D) They increase the “depth” of the product mix.

Answer 32

D

Question 33

Which term best describes products that are introduced as new variations to existing products?

A) Incremental innovations
B) New to the world
C) Additions to existing product lines
D) Discontinuous innovations

Answer 33

C

Question 34

What is one potential benefit of introducing “Additions to existing product lines”?

A) Reducing the company’s market presence
B) Narrowing the appeal to customer segments
C) Increasing the “depth” of the product mix
D) Limiting the company’s product range

Answer 34

C

Question 35

Demand for pet services is greatly increasing across the United States. In fact, Americans will
spend nearly $44 billion dollars on their pets this year. Many American dog owners are seeking
out “doggy daycares” that are more like a resort or spa than an ordinary kennel for their canine
companion. Daycare services for dogs now include toy rooms, outside play areas, doggie
massages, treadmills, swimming pools and cushy beds for nap time. Pet owners can watch their
pets via a Web cam and some doggy daycares have a phone where owners can talk to their dog
when they feel their pet needs to hear their voice. Rates vary from $20 to $45 a day per pet,
depending on the amenities that the pet owner chooses.
NARREND
107. Refer to Going to the Dogs. The doggy daycare center is more like a dog resort than a dog kennel.
A dog daycare represents what type of new product?
a. competitive innovation
b. discontinuous innovation
c. new product lines
d. revision to an existing product
e. higher-priced product

Answer 35

D

Question 36

Which of the following statements accurately describes “Improvements over existing” products?

A) They involve radical changes to the product’s core functionality.
B) They intentionally make products become outdated over time.
C) They focus on maintaining the product’s current state without any changes.
D) They entail minor or major changes to stay competitive.

Answer 36

D

Question 37

Which term best describes the practice of intentionally making products become outdated over time?

A) Continuous improvements
B) Schedule obsolescence
C) Incremental innovations
D) Discontinuous innovations

Answer 37

B

Question 38

_____ occurs when an existing product is targeted toward new market segments. It is another type
of new-product development because the product is new to that segment.
a. Brainstorming
b. Diffusing
c. Repositioning
d. Screening
e. Reciprocity

Answer 38

C. Repositioned products are existing products targeted at new markets or market segments, or repositioned to change the current market’s perception of the product

Question 39

Which of the following best describes “Repositioned products”?

A) They are entirely new products introduced by the company.
B) They are existing products with no changes targeted at new markets.
C) They are existing products targeted at new markets or market segments.
D) They are products that are intentionally made obsolete over time.

Answer 39

C

Question 40

Which term best describes products that are targeted at new markets or market segments, or repositioned to change the current market’s perception?

A) Continuous improvements
B) Discontinuous innovations
C) Incremental innovations
D) Repositioned products

Answer 40

D

Question 41

What is the primary goal of “Repositioned products”?

A) To keep products perpetually outdated
B) To maintain the current market’s perception of the product
C) To introduce entirely new innovations
D) To target new markets or market segments, or change the current market’s perception

Answer 41

D

Question 42

Which of the following statements accurately describes “Repositioned products”?

A) They involve discontinuing products shortly after their release.
B) They are entirely new products introduced by the company.
C) They focus solely on maintaining the current market perception.
D) They involve changing how the brand’s image is perceived by customers and adjusting product positioning.

Answer 42

D

Question 43

What is the primary purpose of “Repositioned products”?

A) To keep products perpetually outdated
B) To maintain the current market’s perception of the product
C) To introduce entirely new innovations
D) To adjust a product’s positioning to stay relevant in the market and change the brand’s image perception

Answer 43

D

Question 44

Which term best describes products that undergo changes in their positioning to maintain relevance in the market?

A) Incremental innovations
B) Discontinuous innovations
C) Continuous improvements
D) Repositioned products

Answer 44

D

Question 45

Which of the following statements accurately describes “Lower priced products”?

A) They typically offer additional features to justify the reduced price.
B) They are introduced to maintain high profit margins.
C) They may involve reducing costs to appeal to broader markets.
D) They primarily target niche markets with higher disposable income.

Answer 45

C

Question 46

What is one potential reason for introducing “Lower priced products”?

A) To maintain high profit margins
B) To introduce additional features to justify the price
C) To appeal to broader markets by reducing costs
D) To exclusively target niche markets with higher disposable income

Answer 46

C

Question 47

Which of the following accurately defines “Lower-priced products”?

A) Products that offer superior performance compared to competitors.
B) Products that are priced higher than competing brands.
C) Products that provide similar performance to competitors at a lower cost.
D) Products that are exclusively marketed to niche markets.

Answer 47

C

Question 48

Lower-priced products often achieve cost reduction through:
a) Decreased quality
b) Increased marketing costs
c) Technological advantages
d) Reduced production scale

Answer 48

C

Question 49

Economies of scale in production contribute to lower-priced products by:
a) Increasing production costs
b) Reducing production efficiency
c) Decreasing unit costs
d) Expanding marketing expenses

Answer 49

C

Question 50

Lower marketing costs can contribute to lower-priced products by:
a) Enhancing brand image
b) Increasing promotional activities
c) Reducing overall expenses
d) Boosting advertising expenditure

Answer 50

C

Question 51

Which factor may NOT contribute to the lower cost of lower-priced products?
a) Technological advantages
b) Economies of scale
c) Higher marketing costs
d) Production efficiency

Answer 51

C

Question 52

Very few firms follow a formal new-product development process.

Answer 52

F

Question 53

A firm’s new-product strategy links the new-product development process with the objectives of
the marketing departments, the business unit, and the corporation.

Answer 53

T

Question 54

What is the primary purpose of aligning the new product development strategy with company objectives?
a) To increase the cost of new product development
b) To ensure the failure of new products
c) To streamline the innovation process
d) To create a misalignment between strategy and objectives

Answer 54

C

Question 55

According to the passage, what is highlighted as the most expensive exercise a company undertakes?
a) Marketing campaigns
b) Product distribution
c) New product development
d) Employee training programs

Answer 55

C

Question 56

Why is a “process” essential for new product development according to the passage?
a) To make innovation easier
b) To reduce expenses
c) To ensure alignment with company objectives
d) To streamline and organize the complex task of innovation

Answer 56

D

Question 57

What is emphasized regarding the introduction of new products?
a) It is a cost-effective endeavor
b) It is a simple process
c) It is a challenging and expensive undertaking
d) It guarantees success for the company

Answer 57

C

Question 58

List the six steps of the new-product development process.

Answer 58

Idea generation
Screening
Business analysis
Development
Test marketing
Commercialization

Question 59

What is the primary purpose of idea generation in the new product development process?
a) To limit creativity
b) To narrow down options quickly
c) To gather a diverse range of ideas
d) To finalize the product concept immediately

Answer 59

C

Question 60

Which of the following is NOT mentioned as a source for gathering ideas during the idea generation phase?
a) Customers
b) Competitors
c) Government agencies
d) R&D efforts

Answer 60

C

Question 61

How is the idea generation process typically conducted?
a) By strictly adhering to predetermined concepts
b) By limiting participation to upper management
c) By utilizing brainstorming and creative techniques
d) By discouraging diverse perspective

Answer 61

C

Question 62

Most new-product ideas are rejected at the idea generation stage.

Answer 62

F. Most are rejected at the idea screening stage.

Question 63

It is considered inefficient to use concept tests during the idea screening stage of the new-product
development process.

Answer 63

F. During the idea screening stage of the new-product development process, it is appropriate to use
concept tests.

Question 64

Concepts tests are considered fairly good predictors of success for line extensions and for
products that do not require major changes in consumer behavior

Answer 64

T

Question 65

Which of the following stages of the new-product development process is the first filter in the
new-product development process and serves to eliminate new-product ideas that are inconsistent
with the organization’s new-product strategy or are obviously inappropriate for some other
reason?
a. applied diffusion
b. introductory diffusion
c. business analysis
d. test marketing
e. idea screening

Answer 65

E

Question 66

At what stage of the new-product development process are most new-product ideas rejected?
a. test marketing
b. diffusion
c. business analysis
d. idea screening
e. idea generation

Answer 66

D

Question 67

After the research team at Nabisco had generated more than two dozen new-product ideas for a
substitute for partially hydrogenated oils that tastes the same but has zero trans fat, the company
formed a committee to analyze whether the product ideas were consistent with the organization’s
new-product strategy. This is called:
a. business analysis
b. diffusion
c. idea screening
d. test marketing
e. idea generation

Answer 67

C

Question 68

Top managers at a commercial real estate firm that specializes in site location and installation of
cellphone towers considered providing the same service for windmill location and installation but
decided this was not within the company’s corporate mission. Which stage of the new-product
development process did its new-product development process reach?

Answer 68

C

Question 69

A European dairy, which is famous for its rich ice creams, has introduced basil, tomato, fennel,
and oregano flavored ice creams. In the process of developing these new flavors, the dairy
surveyed world-famous chefs to determine which nontraditional flavors had the greatest level of
marketability. This survey would have happened during which stage of the product development
process?
a. concept testing
b. brainstorming
c. basic research
d. idea screening
e. applied research

Answer 69

D

Question 70

Andersen Electronics is currently engrossed in its first estimations of costs and revenues for a
new amusement park video skill game. This firm is engaged in a new-product business analysis.

Answer 70

T

Question 71

In the _____ stage of new-product development, preliminary demand, cost, sales, and profitability
estimates are made.
a. prototype screening
b. idea generation
c. concept testing
d. post-brainstorming
e. business analysis

Answer 71

E

Question 72

Middleton has developed the Flybar 1200, an extreme pogo stick that propels users more than
five feet into the air. During the _____ stage of its new-product development process, a group was
assigned the task of estimating preliminary demand for the product, costs (including issues with
liability), sales, and future profitability.
a. business analysis
b. idea generation
c. concept testing
d. screening
e. test marketing

Answer 72

A

Question 73

Before opening the It’s a Dog’s Life doggy resort the potential
company owners projected the costs involved in providing the services the target market (dog
owners) appears to desire. Unfortunately, a decision was made to not proceed with the doggy
resort as the owners felt the cost to provide the services was too high considering the rates the
target market would be willing to pay. The would be an example of _____.
a. idea screening
b. concept testing
c. business analysis
d. commercialization
e. test marketing

Answer 73

C

Question 74

Basically, all that happens in the development stage of the new-product process is that the first
prototype of the product gets developed.

Answer 74

F. Not only is a prototype developed, where appropriate, but also preliminary decisions on every
aspect of the four Ps are developed at this stage.

Question 75

The screening and concept testing stage of the new-product development process is used to:
a. eliminate undesirable ideas and predict
consumer acceptance
b. refine the promotion campaign to be used
with the new product
c. determine the potential profits to be gained
from the new product
d. determine how long the test market should be
run
e. generate new-product ideas

Answer 75

A. Concept tests involve describing the product idea to consumers, usually before any prototype has
been created, and asking for their evaluations.

Question 76

_____ evaluate new-product ideas usually before any prototype has been created.
a. Concept tests
b. Simulated market tests
c. Market tests
d. User tests
e. Venture analyses

Answer 76

A

Question 77

After Mattel evaluated many new products to add to its Barbie product line and before any
prototype was created, the toy manufacturer instructed a committee to select three of the ideas to
present to a group of consumers. The consumer group was asked to evaluate the three product
ideas in terms of their marketability. This stage of new-product development is called:
a. prototype screening
b. concept testing
c. market testing
d. idea manipulation
e. idea diffusing

Answer 77

B

Question 78

In the _____ stage of new-product development, the technical feasibility of manufacturing the
new product is examined as a prototype is produced.
a. screening
b. development
c. market testing
d. concept testing
e. business analysis

Answer 78

B

Question 79

The testing of new lures by tournament professionals and fishing guides would
take place in which stage of new-product development?
a. commercialization
b. idea generation
c. idea screening
d. concept testing
e. product development

Answer 79

E

Question 80

During the development of a prototype product, which department initiates the development of marketing strategies?
a) Research and Development (R&D)
b) Engineering
c) Marketing
d) Sales

Answer 80

C

Question 81

What is the primary purpose of creating prototypes during the development phase?
a) To finalize product designs
b) To test concept realism and feasibility
c) To implement marketing strategies
d) To determine production costs

Answer 81

B

Question 82

Which teams typically collaborate during the development phase?
a) Marketing and production
b) Research and Development (R&D) and sales
c) R&D, engineering, marketing, and production
d) Engineering and distribution

Answer 82

C

Question 83

What stages are typically involved in the development process?
a) Manufacturing, testing, marketing
b) Design, production, sales
c) Design, prototyping, testing
d) Sales, distribution, promotion

Answer 83

C

Question 84

What is a common characteristic of the development process?
a) It occurs in isolation from other departments
b) It is a one-time event
c) It involves continuous repetition
d) It excludes R&D and engineering teams

Answer 84

C

Question 85

During development, what is the purpose of repeating the process?
a) To increase production costs
b) To finalize product designs quickly
c) To refine and improve the product
d) To limit collaboration between team

Answer 85

C

Question 86

What aspect of the development process involves creating a physical representation of the product?
a) Prototyping
b) Marketing
c) Sales forecasting
d) Production planning

Answer 86

A

Question 87

One benefit of test marketing is that the marketing activity is shielded from competitors

Answer 87

F. Test marketing may result in a serious problem if a firm’s competitors find out about the new
product before it has been fully introduced

Question 88

A(n) _____ typically entails showing members of the product’s target market advertising and
other promotional materials for several products, including the test product. These people are then
taken to a mock or real store where their purchases are recorded.
a. adoption-rate test
b. real test market
c. concept test
d. simulated (laboratory) market test
e. consumer juried test

Answer 88

D

Question 89

____ is a limited introduction of a product and a marketing program to determine the reactions
of potential customers in a market situation.
a. Use testing
b. Test marketing
c. Concept testing
d. Laboratory testing
e. Discontinuous innovation

Answer 89

B

Question 90

The maker of Purell hand sanitizer tested consumers’ reactions to its Purell Sanitizing Wipes by
getting consumers to look through a newspaper with grocery store ads, make out a grocery list,
and then “shop” in a mock store filled with real products, including the new product. This is an
example of a(n):
a. adoption-rate test
b. simulated (laboratory) market test
c. concept test
d. use test
e. juried consumer test

Answer 90

B

Question 91

What is the primary purpose of test marketing?
a) To conduct nationwide launches
b) To save the company from product failure
c) To expedite product launch
d) To eliminate the need for market assessment

Answer 91

B

Question 92

How does test marketing potentially benefit a company?
a) By ensuring a rapid nationwide launch
b) By preventing disastrous product failures
c) By avoiding delays in product launch
d) By increasing production costs

Answer 92

B

Question 93

What effect can test marketing have on product launch timelines?
a) It accelerates product launches
b) It has no impact on launch timelines
c) It delays product launches
d) It reduces the need for product testing

Answer 93

C

Question 94

What is one of the key objectives of conducting test marketing?
a) To limit consumer feedback
b) To minimize market success assessment
c) To assess market success and gather feedback
d) To increase the risk of product failure

Answer 94

C

Question 95

Which type of test market introduces products in select markets before a nationwide launch?
a) Standard test markets
b) Simulated test markets
c) Controlled test markets
d) Uncontrolled test markets

Answer 95

A

Question 96

What characterizes simulated test markets?
a) They involve actual consumer testing
b) They randomly divide stores for testing
c) They create artificial market environments
d) They rely on nationwide launches

Answer 96

C

Question 97

What is the primary objective of controlled test markets?
a) To introduce products in select markets
b) To create artificial market environments
c) To assess market success and gather feedback
d) To test variations of products or marketing mix elements

Answer 97

D

Question 98

n controlled test markets, how are stores typically divided for testing purposes?
a) Based on geographical locations
b) Based on consumer preferences
c) Randomly
d) Based on previous sales performance

Answer 98

C

Question 99

The final stage in the new-product development process is:
a. product testing
b. market testing
c. commercialization
d. product prototyping
e. simulated marketing

Answer 99

C

Question 100

During the _____ stage of the new-product development process, production starts, inventories
are built up, the product is shipped to distribution points, the sales force is trained, and advertising
and promotion begin.
a. commercialization
b. product testing
c. market analysis
d. product prototyping
e. simulated marketing

Answer 100

A

Question 101

In terms of the new-product development process, Fitbit’s availability in retail
stores and online is the _____ stage.
a. idea screening
b. idea generation
c. business analysis
d. test marketing
e. commercialization

Answer 101

E

Question 102

What defines the commercialization stage in the product development process?
a) Developing prototypes
b) Testing market reactions
c) Launching the product in the marketplace
d) Conducting market research

Answer 102

C

Question 103

When does commercialization typically occur in the product development timeline?
a) At the beginning
b) During the design phase
c) At the final stage
d) Before prototype development

Answer 103

C

Question 104

What characterizes the commercialization stage?
a) Concern for profitable production
b) Testing market reactions
c) Prototype development
d) Conducting market research

Answer 104

A

Question 105

What is a key consideration during the commercialization stage?
a) Developing initial concepts
b) Finalizing product designs
c) Continuously assessing market reactions
d) Conducting prototype testing

Answer 105

C

Question 106

What is the main focus of concern during the commercialization stage?
a) Initial concept development
b) Profitable production
c) Prototype testing
d) Market research

Answer 106

B

Question 107

Adaptation is the process by which the adoption of an innovation spreads.

Answer 107

F. Diffusion

Question 108

The process by which the adoption of 3-D high-definition televisions spreads is an example of:
a. test market
b. diffusion
c. product dissemination
d. innovative dispersal
e. marketing communication

Answer 108

B

Question 109

All of the following statements about how adopters participate in the diffusion process are true
EXCEPT:
a. Early adopters may also be opinion leaders.
b. Laggards are the last consumers to adopt a
new product.
c. There are three categories of consumers who
will adopt an innovation.
d. The dominant characteristic of members of
the late majority is skepticism.
e. Innovators are the first to purchase a new
product.

Answer 109

C. There are five categories: innovator, early adopter, early majority, late majority, and laggard.

Question 110

All of the following are categories of adopters in the diffusion process of innovations EXCEPT:
a. laggards
b. innovators
c. early majority
d. early adopters
e. doubters

Answer 110

E

Question 111

How is innovation typically perceived by consumers?
a) As an old product
b) As a familiar product
c) As a new product
d) As a discounted product

Answer 111

C

Question 112

_____ are eager to try new ideas and products. They typically have higher incomes, are better
educated, and are more cosmopolitan than other categories of adopters.
a. Early adopters
b. Innovators
c. Early majority
d. Late majority
e. Laggards

Answer 112

B. These are characteristics of innovators, who are almost obsessed with trying new ideas and
products.

Question 113

Mitch purchased a 32-inch high-definition television right after they were introduced in the
marketplace and paid over $8,000 for it. He has a master’s degree in business and is wellinformed about electronic products. He is venturesome and is always looking for new products to
try. Mitch is best described as a(n):
a. early adopter
b. early majority
c. innovator
d. diffusers
e. lead consumer

Answer 113

C

Question 114

Because buyers of fishing lures want to have the newest, most technologically
improved lure, most of Rapala’s customers would more than likely fall into the _____ category of
adopters.
a. laggards
b. prompt diffusers
c. early adopters
d. innovators
e. early majority

Answer 114

D

Question 115

When the dog daycare first launched, it most likely appealed to
which product adopter category?
a. early adopter
b. early majority
c. late majority
d. innovators
e. laggards

Answer 115

D

Question 116

With very few competitors and high product prices, those purchasing
ultrathin computers now are probably the most venturesome consumers, also known as the _____.
a. innovators
b. late majority
c. late adopters
d. early adopters
e. early majority

Answer 116

A

Question 117

How do innovators compare to other groups in terms of market size?
a) They represent the largest portion of the market
b) They represent a small portion of the market
c) They represent the majority of the market
d) They represent the entire market

Answer 117

B

Question 118

What characterizes the behavior of innovators regarding new products?
a) They are hesitant to try new products
b) They consistently stick to new products
c) They try new products but may not stick to them
d) They avoid new products entirely

Answer 118

B

Question 119

Approximately what percentage of adopters do innovators represent?
a) 25%
b) 50%
c) 75%
d) 2.5%

Answer 119

D

Question 120

Which term describes individuals who are variety seekers and try new products but may not become loyal to them?
a) Innovators
b) Early adopters
c) Laggards
d) Adopters

Answer 120

A

Question 121

_____ embrace products relatively early in the product life cycle, are likely to be community
oriented, and often are opinion leaders themselves.
a. Early adopters
b. Innovators
c. Early majority
d. Late majority
e. Laggards

Answer 121

A

Question 122

Jim didn’t buy a netbook computer when they first came out, but he did purchase one a year after
they were introduced into the market. He is very active in his church and local arts council, and
many of his friends asked him which brand to buy when they were considering purchasing a
netbook. Jim is best described as a(n):
a. innovator
b. early adopter
c. early majority
d. leading consumer
e. proactive

Answer 122

B

Question 123

How do early adopters typically respond to new ideas and products?
a) They resist new ideas and products
b) They are hesitant towards new ideas and products
c) They welcome new ideas and products
d) They ignore new ideas and products

Answer 123

C

Question 124

What distinguishes early adopters in terms of their knowledge and attitude towards new products?
a) They are uninformed and disinterested
b) They are well-informed and passionate
c) They are skeptical and conservative
d) They are unaware of new products

Answer 124

B

Question 125

What role do early adopters play in the success of new products?
a) They have no impact on the success of new products
b) They are essential for the success of new products
c) They delay the success of new products
d) They prevent the success of new products

Answer 125

B

Question 126

Approximately what percentage of adopters do early adopters represent?
a) 25%
b) 50%
c) 75%
d) 13.5%

Answer 126

D

Question 127

Among adopter groups, who are likely to influence others’ opinions and behaviors regarding new products?
a) Early majority
b) Laggards
c) Late majority
d) Early adopters

Answer 127

D

Question 128

A company has learned members of its target market are likely to collect more information and
evaluate more brands than early adopters. They are cautious and thoughtful and do not try the
product without asking someone else. The customers’ dominant characteristic is deliberateness. In
terms of the diffusion process, these customers are most likely:
a. innovators
b. early minority
c. laggards
d. early majority
e. late majority

Answer 128

D. The early majority will collect more information and evaluate more brands than do early
adopters. They rely on friends, neighbors, and opinion leaders for information.

Question 129

8. Liz tends to adopt new products sooner than a lot of other people, but she weighs the pros and
   cons before buying. She does considerable product research, but her friends don’t really look to
   her for information. She really deliberates before she makes a purchase. Liz is best described as
   a(n):
   a. innovator
   b. early adopter
   c. early majority
   d. late majority
   e. laggard

Answer 129

C

Question 130

What distinguishes the early majority in terms of group size?
a) They represent a small portion of the market
b) They represent the majority of the market
c) They represent the entire market
d) They are the first group to adopt a product

Answer 130

B

Question 131

How do early majority consumers typically approach the adoption of new products?
a) They ignore new products entirely
b) They enthusiastically embrace new products
c) They weigh the pros and cons before adopting new products
d) They resist new products

Answer 131

C

Question 132

Approximately what percentage of adopters do early majority consumers represent?
a) 25%
b) 50%
c) 75%
d) 34%

Answer 132

D

Question 133

The _____ adopt a product because most of their friends have already done so, and their adoption
is usually the result of pressure to conform because they rely on group norms.
a. laggards
b. early adopters
c. early majority
d. innovators
e. late majority

Answer 133

E

Question 134

Which category of adopters adopt a new product because most of their friends have already
adopted it?
a. innovators
b. early majority
c. early adopters
d. laggards
e. late majority

Answer 134

E

Question 135

Leon is not very quick to purchase innovative products when they come out, but after a while he
breaks down and buys if after most of his friends have bought it. He gets most of his information
from them when he decides to buy something. He is very skeptical of marketing, so he trusts his
friends more than anything. Leon is best described as a(n):
a. innovator
b. early adopter
c. early majority
d. late majority
e. laggard

Answer 135

D

Question 136

Among the late majority group, adoption of a product primarily results from:
a. word-of-mouth communications
b. print advertising
c. advertising in nontraditional media
d. broadcast advertising
e. sales promotions

Answer 136

A

Question 137

Consumers described as laggards tend to rely on group norms when deciding to adopt an
innovation.

Answer 137

F. Laggards do not rely on group norms, and their independence is rooted in their ties to tradition.

Question 138

In the adopter categories, the final 16 percent to adopt are similar to innovators in that they do not
rely on the norms of the group but are independent because they are tradition-bound. They tend to
have the lowest socioeconomic status, are suspicious of new products, and are alienated from a
rapidly advancing society. They are called:
a. generics
b. late majority
c. decliners
d. laggards
e. late diffusers

Answer 138

D

Question 139

Which is the last adopter category to adopt an innovation?
a. late majority
b. laggards
c. late diffusers
d. reluctant adopters
e. traditionalists

Answer 139

B

Question 140

Procter & Gamble is introducing a new fabric softener dispenser that consumers stick to the
inside of the dryer drum and plans to send consumers free samples in the mail. This strategy will
likely increase the rate of adoption of the new product.

Answer 140

T. Trialability

Question 141

All of the following are product characteristics influencing the rate of adoption EXCEPT:
a. complexity
b. compatibility
c. relative advantage
d. observability
e. distribution

Answer 141

E. Five Characteristics:
Relative Advantage
Compatibility
Simplicity (vs. Complexity)
Communicability (or Observability)
Trialability

Question 142

Which product factor influencing the rate of adoption represents the degree of difficulty involved
in understanding and using a new product?
a. complexity
b. compatibility
c. relative advantage
d. observability
e. trialability

Answer 142

A

Question 143

The product characteristic affecting the rate of adoption characterized by the degree to which a
product is perceived as superior to existing substitutes is:
a. compatibility
b. complexity
c. relative advantage
d. product differentiation
e. competitive advantage

Answer 143

C

Question 144

Biopure Corp. is developing a human blood substitute called Hemopure. Unlike like donated
human blood that needs to be refrigerated and expires after a short period of time, Hemopure is
shelf-stable and can be stored for two years or more. It does not need to be matched to a person’s
blood type like donated blood does. These factors make it well-suited for trauma cases where
blood must be transfused at an accident site or on the battlefield. Which product characteristic
influencing the rate of adoption does this represent?
a. complexity
b. compatibility
c. relative advantage
d. observability
e. trialability

Answer 144

C

Question 145

The fact that Fitbit can monitor motion while awake and asleep makes it different
from competing products that might increase its rate of adoption. Which product characteristic
affecting the rate of adoption does this illustrate?
a. complexity
b. compatibility
c. relative advantage
d. observability
e. trialability

Answer 145

C

Question 146

The degree to which the newest lures are perceived as superior to earlier models
refers to their _____, a characteristic used to predict the rate of adoption.
a. trialability
b. observability
c. relative advantage
d. differentiation capability
e. complexity

Answer 146

C

Question 147

Which product characteristic affecting the rate of adoption represents the degree to which the new
product is consistent with existing values and product knowledge, past experiences, and current
needs?
a. complexity
b. compatibility
c. relative advantage
d. observability
e. trialability

Answer 147

B

Question 148

A European dairy, which is famous for its rich ice creams, has introduced basil, tomato, fennel,
and oregano flavored ice creams. Which of the following product characteristics would most
likely influence the market success of these new flavors?
a. compatibility
b. comparability
c. complexity
d. tangibility
e. competitive advantage

Answer 148

A. “Compatibility” refers to how well the new product aligns with the needs, preferences, and habits of the target market. In this case, the European dairy is introducing unconventional flavors like basil, tomato, fennel, and oregano. The success of these flavors would largely depend on whether consumers find them compatible with their taste preferences and culinary expectations. If the market perceives these flavors as interesting and appealing, they are more likely to be successful. Therefore, compatibility is the product characteristic that would have the most significant influence on the market success of these new flavors.

Question 149

When the Segway Human Transporter was introduced in 2002, many people expected the product
to be a phenomenal success. While the Segway is still on the market it has never been the success
so many expected. A recent Wall Street Journal article suggested that the Segway, while brilliant
technologically, seemed impractical to most people as it could not be used to replace their current
method of transportation. In other words, the Segway had problems with _____.
a. compatibility
b. relative advantage
c. observability
d. trialability
e. longevity

Answer 149

A. Since the Segway could not replace consumer’s current transportation it was incompatible with
consumers’ transportation needs.

Question 150

Many product failures such as Cucumber antiperspirant spray, Toaster Eggs, and Health-Sea seasausages most likely did not succeed because they did not conform to the product characteristic
of:
a. complexity
b. trialability
c. total advantage
d. observability
e. compatibility

Answer 150

E

Question 151

One challenge to adoption of the dog daycare is the fact that dog
owners are used to paying a somewhat minimal fee for boarding their dog in a kennel, while a
daycare center may demand many times as much for the same time span. This suggests the _____
of the new product may affect the rate of diffusion.
a. compatibility
b. complexity
c. relative advantage
d. observability
e. trialability

Answer 151

A.

Question 152

Two advantages the Voodoo Envy has over the MacBook Air are
removable batteries and an Ethernet port. In other words, since the Voodoo Envy has these
features that are consistent with full size laptops, in terms of the adoption process, it has the
advantage of _____.
a. compatibility
b. complexity
c. maturity
d. observability
e. trialability

Answer 152

A

Question 153

What does compatibility refer to in the context of a new product?
a) The product’s price compared to competitors
b) The product’s design and aesthetics
c) The degree to which the new product aligns with existing values and knowledge
d) The product’s popularity among early adopters

Answer 153

C

Question 154

According to the definition provided, what factors does compatibility consider?
a) Price and quality
b) Design and innovation
c) Existing values, product knowledge, past experiences, and current needs
d) Brand reputation and market presence

Answer 154

C

Question 155

Oakley, the manufacturer of protective eyewear for sports enthusiasts, has recently introduced
Oakley’s Thump, UV sunglasses that allow the wearer to store and listen to 120 different songs.
Which of the following product characteristics would likely exert the greatest influence on the
market success of these new glasses?
a. compatibility
b. comparability
c. complexity
d. tangibility
e. competitive advantage

Answer 155

C

Question 156

Which product characteristic affecting the rate of adoption of a new product represents the degree
to which the benefits or other results of using the product can be communicated to target
customers?
a. observability
b. diffusion
c. adoption
d. trialability
e. complexity

Answer 156

A

Question 157

Razor scooters gained instant popularity because walkers and runners frequently saw people on
the scooters zipping by them and having fun. This information suggests the adoption rate of the
Razor scooter was most affected by which product characteristic?
a. complexity
b. trialability
c. relative advantage
d. observability
e. compatibility

Answer 157

D

Question 158

A new medication to eliminate fungal growths on people’s toenails may have a slow rate of
adoption because it is not a highly visible item in homes. Also, this item is not often discussed
among friends and coworkers. This is an example of how the characteristic of _____ can work to
slow the adoption process.
a. relative advantage
b. observability
c. trialability
d. complexity
e. compatibility

Answer 158

B

Question 159

For many dog owners it may be hard to understand the difference
between a traditional kennel and a dog daycare, especially given the price differential. As a result,
dog daycares may offer special low rates for first-time users in an effort to reduce which of the
following issues concerning the rate of diffusion:
a. compatibility
b. complexity
c. observability
d. innovativeness
e. relative advantage

Answer 159

C. By lowering the price for first-time users, the dog daycare will make it easier for dog owners to
try the facility and experience its benefits.

Question 160

What does communicability, or observability, refer to in the context of a product?
a) The product’s physical appearance
b) The ease of use of the product
c) How easily the benefits of the product can be conveyed to potential users
d) The popularity of the product among early adopters

Answer 160

C

Question 161

The degree to which a product can be used on a limited basis represents which product
characteristic influencing the rate of adoption?
a. complexity
b. trialability
c. observability
d. relative advantage
e. sampling

Answer 161

B

Question 162

Which of the following products has the lowest level of trialability?
a. an Internet chat room
b. low-fat ice cream
c. surgically implanted hearing aids
d. organic pet food
e. a new air freshener

Answer 162

C

Question 163

When Coca-Cola North American debuted Gold Peak iced tea, a spokesperson for the company
said, “In looking at the ready-to-drink tea market, we found that the one place that nobody
seemed to be playing was in the category of classic iced teas like mother used to make. Gold Peak
is a quality product that brings back that classic taste. We’re going to do a lot of sampling with
this product because we believe that if people try it, they’re going to love it and stick with it.” In
other words, its adoption rate will rely on its:
a. compatibility
b. comparability
c. complexity
d. trialability
e. competitive advantage

Answer 163

D

Question 164

What does the term “Product Life Cycle” (PLC) refer to?
a) The duration of time a product remains in the marketplace
b) The various stages that products typically pass through during their time in the marketplace
c) The sales volume of a product over its lifetime
d) The marketing strategies employed for a specific product

Answer 164

B

Question 165

How are the stages of the Product Life Cycle (PLC) typically correlated?
a) With changes in consumer preferences
b) With fluctuations in market demand
c) With relative sales volume
d) With variations in production costs

Answer 165

C

Question 166

What is an important characteristic of the Product Life Cycle (PLC) according to the provided description?
a) It follows a fixed pattern for all products
b) It correlates directly with product innovation
c) It may not follow a typical pattern
d) It accelerates product obsolescence

Answer 166

C

Question 167

The product life cycle is a biological metaphor that traces the stages of a product’s acceptance,
from its introduction (birth) to its decline (death).

Answer 167

T

Question 168

The growth stage is the first stage of the product life cycle.

Answer 168

F. The introduction

Question 169

Increasing competition, aggressive brand advertising, and healthy profits are all characteristics
found in the introductory stage of the product life cycle.

Answer 169

F. the growth stage

Question 170

Profits typically reach their peak during the growth stage of the product life cycle

Answer 170

T

Question 171

During the maturity stage of the product life cycle, marginal competitors start dropping out of the
market.

Answer 171

T

Question 172

. Many products may experience short-term fluctuations in sales, but a long-term drop in sales
probably signifies that a product is in the decline stage of the product life cycle.

Answer 172

T

Question 173

The product life cycle concept encourages marketing managers to act reactively

Answer 173

F. The product life cycle concept encourages marketing managers to plan so they can take the
initiative instead of reacting to past events.

Question 174

The stages of the product life cycle, in order, are:
a. introduction, maturity, decline
b. introduction, growth, maturity, decline
c. growth, maturity, plateau, decline
d. innovation, early adoption, late adoption,
laggard
e. category acceptance, category growth, brand
acceptance, brand growth

Answer 174

B

Question 175

A brand of iced tea, called Gold Peak, has high marketing costs as well as high production costs.
Promotions for the product are aimed at gaining distribution and informing consumers that this
premium product tastes like it’s home-brewed. In which stage of the product life cycle is Gold
Peak iced tea?
a. introductory
b. growth
c. maturity
d. decline
e. saturation

Answer 175

A

Question 176

The length of the introductory stage of the product life cycle for a new product is largely
determined by:
a. the size of the product
b. the product’s marketing mix
c. the efficiency of the test marketing
d. product characteristics, such as advantages
over substitute products
e. the size of the market

Answer 176

D

Question 177

The phase of the product life cycle in which healthy profits usually begin to appear is the _____
stage.
a. growth
b. decline
c. introductory
d. maturity
e. commercialization

Answer 177

A

Question 178

During the growth stage of the product life cycle:
a. there is little emphasis on the distribution
strategy
b. demand for the product is limited to highincome consumers
c. prices increase due to economies of scale
d. there is decreased direct competition
e. profits peak

Answer 178

E

Question 179

What characterizes the Introduction stage of the Product Life Cycle (PLC) in terms of investment?
a) Low investment by companies
b) Moderate investment by companies
c) High investment by companies
d) No investment by companies

Answer 179

C

Question 180

What typically happens to profits during the Introduction stage of the Product Life Cycle (PLC)?
a) Profits increase rapidly
b) Profits remain negative
c) Profits stabilize
d) Profits peak

Answer 180

B

Question 181

What are the sales growth trends during the Introduction stage of the Product Life Cycle (PLC)?
a) Sales grow rapidly
b) Sales decline steadily
c) Sales grow slowly
d) Sales remain constant

Answer 181

C

Question 182

What are the primary marketing goals during the Introduction stage of the Product Life Cycle (PLC)?
a) Building brand loyalty
b) Maximizing market share
c) Creating awareness and explaining product benefits
d) Focusing on cost reduction

Answer 182

C

Question 183

What marketing strategies are emphasized during the Introduction stage of the Product Life Cycle (PLC)?
a) Passive marketing
b) Minimal promotion
c) Intensive selling to channel members and aggressive promotion to consumers
d) Limited communication with consumers

Answer 183

C

Question 184

What happens to sales and profits during the Growth stage of the Product Life Cycle (PLC)?
a) Sales decrease and profits remain stable
b) Sales and profits both experience strong growth
c) Sales increase while profits decrease
d) Sales and profits both decline

Answer 184

B

Question 185

What happens to competition during the Growth stage of the Product Life Cycle (PLC)?
a) Competition decreases
b) Competition remains stable
c) Intense competition arises as other competitors enter the market
d) Competition becomes non-existent

Answer 185

C

Question 186

What strategy may companies adopt to dominate the market during the Growth stage of the Product Life Cycle (PLC)?
a) Cost reduction
b) Minimal investment
c) Heavy investment to dominate the market
d) Limited expansion

Answer 186

C

Question 187

B.F. Goodrich has been manufacturing and marketing automotive tires for over one hundred
years. It spends much of its marketing budget on short-term promotions aimed at stealing market
share from Goodyear, Dunlap, and other tire manufacturers. From this information, you should
know tires are in the _____ stage of their product life cycle.
a. maturity
b. growth
c. saturation
d. decline
e. development

Answer 187

A. During the maturity stage, heavy consumer promotion by the manufacturer is required to maintain
market share.

Question 188

What advantage do companies benefit from during the Growth stage of the Product Life Cycle (PLC)?
a) Economies of scope
b) Economies of scale
c) Diseconomies of scale
d) Economies of competition

Answer 188

B

Question 189

Typically, at the beginning of the maturity stage of the product life cycle, sales:
a. become flat and do not change
b. increase at an increasing rate
c. decrease at a decreasing rate
d. decrease at an increasing rate
e. increase at a decreasing rate

Answer 189

E

Question 190

Normally, the longest stage of the product life cycle is the _____ stage.
a. maturity
b. growth
c. introductory
d. decline
e. development

Answer 190

A

Question 191

In which stage of the product life cycle do marginal competitors start dropping out of the market?
a. introduction
b. growth
c. maturity
d. decline
e. shake-out

Answer 191

C

Question 192

What typically happens to sales during the Maturity stage of the Product Life Cycle (PLC)?
a) Sales increase rapidly
b) Sales stabilize or grow slowly
c) Sales decline steadily
d) Sales fluctuate unpredictably

Answer 192

B

Question 193

What effect does increased competition have on prices during the Maturity stage of the Product Life Cycle (PLC)?
a) Prices increase
b) Prices remain stable
c) Prices drop due to increased competition
d) Prices fluctuate unpredictably

Answer 193

C

Question 194

How would you describe the competition during the Maturity stage of the Product Life Cycle (PLC)?
a) Competition diminishes
b) Competition remains intense
c) Competition becomes non-existent
d) Competition becomes sporadic

Answer 194

B

Question 195

What happens to the market structure during the Maturity stage of the Product Life Cycle (PLC)?
a) The market structure becomes unstable
b) The market structure stabilizes with well-established competitors
c) The market structure becomes highly volatile
d) The market structure remains unchanged

Answer 195

B

Question 196

What is the primary focus of companies during the Maturity stage of the Product Life Cycle (PLC)?
a) Expanding market reach
b) Recovering investments
c) Introducing new products
d) Minimizing competition

Answer 196

A

Question 197

A long-run drop in sales signals the beginning of which stage in the product life cycle?
a. laggard stage
b. saturation stage
c. deterioration stage
d. decline stage
e. decay stage

Answer 197

D

Question 198

Which of the following products is most likely to be in the decline stage of its product life cycle?
a. cookie mixes
b. wireless mobile phones
c. programmable CD-ROMs
d. funeral caskets
e. prerecorded audiocassette tapes

Answer 198

E

Question 200

. The rate of sales decline during the decline stage of the product life cycle is largely governed by:
a. the amount of money spent on advertising
b. the number of competitors in the market
c. the intensity of the competition’s marketing
efforts
d. the amount of shelf space allotted to the
product
e. how rapidly consumer tastes change or
substitute products are adopted

Answer 200

E

Question 201

You are a product manager for a manufacturer of trampolines. You have determined that the
trampoline is in the maturity stage of the product life cycle. To keep your product from entering
the decline stage, you should:
a. use promotion to increase primary demand for
trampolines
b. abandon peripheral target markets for
trampolines
c. raise the price of your trampolines because
customers are not price sensitive in this stage
d. eliminate all unnecessary marketing expense
e. promote trampolines heavily to dealers and
customers

Answer 201

E

Question 202

Which of the following statements about the product life cycle (PLC) is true?
a. The PLC concept encourages marketing
managers to think reactively.
b. Marketers do not yet understand the
relationship between the adopter categories
and the stages of the PLC.
c. There are as many new buyers in the maturity
stage of the PLC as in the growth stage.
d. The PLC is especially useful as a predicting
tool.
e. Just as there are five adopter categories, there
are five PLC stages.

Answer 202

D

Question 203

Central Bark Doggie Day Care currently has 31 locations, with a new
Gainesville, FL location coming soon. With the opening of competition in the form of Camp Bow
Wow and others, it appears that the dog daycare product is moving into the _____ stage of the
product life cycle.
a. commercialization
b. introductory
c. growth
d. maturity
e. decline

Answer 203

C

Question 204

The price of the Voodoo Envy is expected to be approximately $2,000.
According to Forrester Research, anything above $1,500 in this market would be considered
“ultra expensive.” In order to motivate consumers to spend $2,000 for the Voodoo Envy, HP will
probably need to spend considerable money on advertising to educate consumers to the
advantages of ultrathin laptops. This is a characteristic of which stage of the product life cycle?
a. equity
b. growth
c. maturity
d. introductory
e. decline

Answer 204

D