Question 1

The product life cycle describes the stages a really new product idea goes through from beginning to end.

Accepted Answer

A) True 
 B)False

Question 2

Even in a full-scale market test, the firm is testing only the product, not the whole marketing mix.

Accepted Answer

A) True 
 B)False

Question 3

The money spent to improve quality should not only satisfy customers but also justify the cost through improved profit.

Accepted Answer

A) True 
 B)False

Question 4

Regarding product life cycles, which of the following is not true?

Accepted Answer

A)   Industry profits are likely to level off or decline before sales level off.
B)   The level of promotion usually decreases in market maturity since there is less revenue to cover the cost.
C)   Many close substitutes are usually competing in the market maturity stage.
D)   It is usually expensive for a new firm to enter in the market maturity stage.
E)   There is a downward pressure on prices over time.

Question 5

Midway, Inc. has seen most of its competitors drop out of its product-market due to declining industry sales and profits. But Midway still has much demand for its product from a small group of loyal customers. This product-market is in which product life cycle stage?

Accepted Answer

A)   Market introduction
B)   Market maturity
C)   Market development
D)   Market growth
E)   Sales decline

Question 6

In the _____ step of the new-product development process, a marketing manager evaluates how well the idea fits with the company's objectives.

Accepted Answer

A)   idea generation
B)   commercialization
C)   screening
D)   development
E)   roll out

Question 7

It is difficult to maintain consistent quality in services because

Accepted Answer

A)   services are nonperishable.
B)   as opposed to products, services are tangible in nature.
C)   the service provider deals directly with the customer and often has to interpret each customer's needs.
D)   variability is reduced as more humans are involved in delivery.
E)   it requires minimum human interaction.

Question 8

Kelly Drake, marketing manager for Find-Ur-Way global positioning systems, is testing the marketing mix for one of her company's new products. The product was introduced in two different markets with different prices and packages. This suggests the new product was in the _____ step of the new-product development process.

Accepted Answer

A)   commercialization
B)   idea evaluation
C)   screening
D)   development
E)   idea generation

Question 9

The last step in the new-product development process is:

Accepted Answer

A)   idea generation.
B)   commercialization.
C)   idea evaluation.
D)   development.
E)   screening.

Question 10

Which of the following is NOT one of the text's product life cycle stages?

Accepted Answer

A)   Market maturity
B)   Market penetration
C)   Market introduction
D)   Sales decline
E)   Market growth

Question 11

Full-scale market tests:

Accepted Answer

A)   Are unrealistic because they do not test the whole marketing mix.
B)   Are not expensive.
C)   Should always be skipped if management is sure that it understands consumer preferences.
D)   May provide information to competitors.
E)   Are used mostly for products that have high production costs and long lead times.

Question 12

It is still possible for a firm to earn a profit if it operates in the sales decline stage of the product life cycle.

Accepted Answer

A) True 
 B)False

Question 13

In the idea evaluation stage

Accepted Answer

A)   an actual product is developed.
B)   companies cannot estimate likely costs.
C)   concept testing is used for getting reactions from customers.
D)   there is some engineering to design and develop the physical part of a product.
E)   the final ROI is estimated.

Question 14

Product managers:

Accepted Answer

A)   Are especially common in large companies.
B)   Are sometimes responsible for a product's whole marketing effort.
C)   Coordinate their efforts with individuals within and outside the company.
D)   May serve as "product champions" in planning and implementing the promotion effort.
E)   All of these alternatives are correct.

Question 15

Regarding product life cycles, good marketing managers know that:

Accepted Answer

A)   all competitors lose money during the sales decline stage.
B)   they are getting longer.
C)   industry sales reach their maximum during the market growth stage.
D)   firms earn their biggest profits during the market introduction stage.
E)   industry profits reach their maximum during the market growth stage.

Question 16

The market maturity stage of the product life cycle rarely lasts more than one or two months.

Accepted Answer

A) True 
 B)False

Question 17

Product managers or brand managers are most often found in firms with only one or a few related products.

Accepted Answer

A) True 
 B)False

Question 18

By law, a firm may call a new product "new" for only six months. This regulation, and many similar product regulations, are established by the:

Accepted Answer

A)   Environmental Protection Agency (EP
A)  
B)   Federal Trade Commission (FT
C)  
C)   Consumer Product Safety Commission (CPS
C)  
D)   Food and Drug Administration (FD
A)  
E)   U.S. Department of Justice (DOJ)

Question 19

It is easy for marketing managers to predict how long a product or brand will stay in each stage of the product life cycle.

Accepted Answer

A) True 
 B)False

Question 20

Gradual "rollouts" are characteristic of which step of the new-product development process?

Accepted Answer

A)   Idea generation
B)   Development
C)   Idea screening
D)   Idea evaluation
E)   Commercialization

Exam 9: Product Management and New-Product Development

The product life cycle describes the stages a really new product idea goes through from beginning to end.

Correct Answer
verified

Which of the following is NOT one of the text's product life cycle stages?

Correct Answer
verified

Midway, Inc. has seen most of its competitors drop out of its product-market due to declining industry sales and profits. But Midway still has much demand for its product from a small group of loyal customers. This product-market is in which product life cycle stage?

Correct Answer
verified

By law, a firm may call a new product "new" for only six months. This regulation, and many similar product regulations, are established by the:

Correct Answer
verified

Gradual "rollouts" are characteristic of which step of the new-product development process?

Correct Answer
verified

It is difficult to maintain consistent quality in services because

Correct Answer
verified

The money spent to improve quality should not only satisfy customers but also justify the cost through improved profit.

Correct Answer
verified

It is still possible for a firm to earn a profit if it operates in the sales decline stage of the product life cycle.

Correct Answer
verified

It is easy for marketing managers to predict how long a product or brand will stay in each stage of the product life cycle.

Correct Answer
verified

In the _____ step of the new-product development process, a marketing manager evaluates how well the idea fits with the company's objectives.

Correct Answer
verified

Product managers:

Correct Answer
verified

Regarding product life cycles, good marketing managers know that:

Correct Answer
verified

The last step in the new-product development process is:

Correct Answer
verified

Full-scale market tests:

Correct Answer
verified

Even in a full-scale market test, the firm is testing only the product, not the whole marketing mix.

Correct Answer
verified

Correct Answer
verified

Product managers or brand managers are most often found in firms with only one or a few related products.

Correct Answer
verified

The market maturity stage of the product life cycle rarely lasts more than one or two months.

Correct Answer
verified

In the idea evaluation stage

Correct Answer
verified

Regarding product life cycles, which of the following is not true?

Correct Answer
verified

Exam 9: Product Management and New-Product Development

The product life cycle describes the stages a really new product idea goes through from beginning to end.

Correct AnswerverifiedShow Answer

Which of the following is NOT one of the text's product life cycle stages?

Correct AnswerverifiedShow Answer

Midway, Inc. has seen most of its competitors drop out of its product-market due to declining industry sales and profits. But Midway still has much demand for its product from a small group of loyal customers. This product-market is in which product life cycle stage?

Correct AnswerverifiedShow Answer

By law, a firm may call a new product "new" for only six months. This regulation, and many similar product regulations, are established by the:

Correct AnswerverifiedShow Answer

Gradual "rollouts" are characteristic of which step of the new-product development process?

Correct AnswerverifiedShow Answer

It is difficult to maintain consistent quality in services because

Correct AnswerverifiedShow Answer

The money spent to improve quality should not only satisfy customers but also justify the cost through improved profit.

Correct AnswerverifiedShow Answer

It is still possible for a firm to earn a profit if it operates in the sales decline stage of the product life cycle.

Correct AnswerverifiedShow Answer

It is easy for marketing managers to predict how long a product or brand will stay in each stage of the product life cycle.

Correct AnswerverifiedShow Answer

In the _____ step of the new-product development process, a marketing manager evaluates how well the idea fits with the company's objectives.

Correct AnswerverifiedShow Answer

Product managers:

Correct AnswerverifiedShow Answer

Regarding product life cycles, good marketing managers know that:

Correct AnswerverifiedShow Answer

The last step in the new-product development process is:

Correct AnswerverifiedShow Answer

Full-scale market tests:

Correct AnswerverifiedShow Answer

Even in a full-scale market test, the firm is testing only the product, not the whole marketing mix.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Product managers or brand managers are most often found in firms with only one or a few related products.

Correct AnswerverifiedShow Answer

The market maturity stage of the product life cycle rarely lasts more than one or two months.

Correct AnswerverifiedShow Answer

In the idea evaluation stage

Correct AnswerverifiedShow Answer

Regarding product life cycles, which of the following is not true?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified