Flashcards About MKTG 3310 // CH 8 Practice Test
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1) What are the two ways that a company can obtain new products? A) line extension and brand management B) internal development and merger C) new-product development and acquisition D) service development and product extension E) market mix modification and research and development
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Answer: C Diff: 2 Page Ref: 244 Skill: Concept
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2) Product improvements, product modifications, and original products can all be classified as ________. A) pioneer products B) new products C) product concepts D) product ideas E) test products
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Answer: B Diff: 1 Page Ref: 244 Skill: Concept
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3) Which of the following is NOT a challenge presented to marketers by the product life cycle? A) All products eventually decline. B) A firm must be good at developing new products to replace aging ones. C) A firm must be good at adapting its marketing strategies. D) It is difficult to plot the stages as a product goes through them. E) Changing tastes, technologies, and competition affect the marketing of the product as it passes through lifecycle stages.
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Answer: D Diff: 2 Page Ref: 244 Skill: Concept
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4) Which of the following is NOT a potential reason for a new product to fail? A) an underestimated market size B) a poorly designed product C) an incorrectly positioned product D) higher than anticipated costs of product development E) ineffective advertising
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Answer: A Diff: 2 Page Ref: 245 Skill: Concept
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5) The creation of a successful new product depends on a company's understanding of its ________ and its ability to deliver ________ to customers. A) competitors, distributors, and employees: new styles B) customers, brands, products: product images C) customers, competitors, and markets: superior value D) product, marketing mix, and marketing strategy: functional features E) product life cycle, legal responsibilities, and social responsibilities: innovations
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Answer: C Diff: 2 Page Ref: 245 Skill: Concept
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6) New product development starts with ________. A) idea generation B) idea screening C) concept development D) concept testing E) test marketing
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Answer: A Diff: 1 Page Ref: 245 Skill: Concept
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7) Executives, manufacturing employees, and salespeople are all examples of ________. A) external sources for new-product ideas B) internal sources for new-product ideas C) core members of innovation management systems D) research and development team members E) new-product committee members
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Answer: B Diff: 2 Page Ref: 246 Skill: Concept AACSB: Communication
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8) Your company decides to use internal sources for developing new product ideas. Which of the following would NOT be consulted? A) executives and professionals B) company records and data C) intrapreneurial programs D) suppliers E) salespeople
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Answer: D Diff: 2 Page Ref: 246 Skill: Concept
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9) According to your text, which of the following is perhaps the most important external source of new-product ideas? A) engineers B) customers C) competitors D) trade magazines, shows, and seminars E) distributors and suppliers
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Answer: B Diff: 2 Page Ref: 247 Skill: Concept AACSB: Communication
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10) Which of the following is NOT a recommended method for companies to tap into their customers as sources for new-product ideas? A) analyzing customer complaints and questions B) relying heavily on customers to know what types of technical products they need C) working alongside customers to get ideas and suggestions D) turning customers into cocreators E) putting products created by their customers on the market
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Answer: B Diff: 2 Page Ref: 247-248 Skill: Concept
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11) Your firm asks you to consult external sources for new product ideas. All of the following are common external sources EXCEPT ________. A) customers B) suppliers C) competitors D) trade shows and magazines E) the firm's executives
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Answer: E Diff: 1 Page Ref: 246-247 Skill: Concept AACSB: Communication
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12) 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) limited number: sustain
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Answer: D Diff: 2 Page Ref: 248 Skill: Concept
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13) The R-W-W framework asks three questions: Is it real? Can we win? Is it worth doing? Marketers should ask these questions during the ________ stage of the new-product development process. A) idea generation B) idea screening C) concept testing D) product development E) commercialization
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Answer: B Diff: 2 Page Ref: 248 Skill: Concept
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14) 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. A) idea generation B) idea screening C) concept testing D) concept development E) business analysis
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Answer: B Diff: 2 Page Ref: 248 Skill: Concept
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15) Which of the following is most likely to be included in an executive's write up of a new-product idea to be presented to a new-product committee? A) the proposed customer value proposition B) the product image C) the marketing strategy D) the business analysis E) the planned market rollout
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Answer: A Diff: 2 Page Ref: 248 Skill: Concept
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16) A detailed version of a new idea stated in meaningful customer terms is called a ________. A) product idea B) product concept C) product image D) product proposal E) product movement
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Answer: B Diff: 2 Page Ref: 248 Skill: Concept AACSB: Communication
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17) 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
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Answer: C Diff: 2 Page Ref: 248 Skill: Concept AACSB: Communication
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18) An attractive idea must be developed into a ________. A) product idea B) product concept C) product image D) test market E) product strategy
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Answer: B Diff: 2 Page Ref: 248 Skill: Concept
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19) ________ 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
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Answer: B Diff: 1 Page Ref: 249 Skill: Concept
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20) In the concept testing stage of new-product development, a product concept in ________ form is presented to groups of target consumers. A) physical or symbolic B) prototype C) final D) market-tested E) commercial
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Answer: A Diff: 2 Page Ref: 249 Skill: Concept
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21) With what groups do firms conduct concept testing for new products? A) suppliers B) employees C) target consumers D) manufacturers E) competitors
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Answer: C Diff: 2 Page Ref: 249 Skill: Concept
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22) For some ________, a simple description consisting of a word or picture might be sufficient. A) concept tests B) product concepts C) marketing strategies D) product developments E) business analyses
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Answer: A Diff: 2 Page Ref: 249 Skill: Concept AACSB: Communication
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23) After concept testing, a firm would engage in which stage in developing and marketing a new product? A) idea screening B) marketing strategy development C) business analysis D) product development E) test marketing
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Answer: B Diff: 2 Page Ref: 249 Skill: Concept
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24) The first part of the marketing strategy statement describes the target market: the planned product positioning: and goals for sales, profits, and ________. A) market share B) competition C) secondary market D) competition's anticipated reaction E) life-cycle duration
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Answer: A Diff: 2 Page Ref: 249 Skill: Concept
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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) target market
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Answer: C Diff: 3 Page Ref: 250 Skill: Concept
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26) The third part of the marketing strategy statement includes all of the following EXCEPT ________. A) long-run sales B) profit goals C) marketing mix strategies D) short-run sales E) A and C
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Answer: D Diff: 3 Page Ref: 250 Skill: Concept
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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 plan B) market strategy development C) business analysis D) product acceptance E) proposal
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Answer: C Diff: 1 Page Ref: 250 Skill: Concept
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28) During which stage of new-product development will management most likely estimate minimum and maximum sales to assess the range of risk in launching a new product? A) concept testing B) marketing strategy development C) business analysis D) product development E) test marketing
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Answer: C Diff: 2 Page Ref: 250 Skill: Concept
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29) Once managers of The Grecian Urn have decided on their product concept and marketing strategy, they can evaluate the business attractiveness of the proposal in the ________ stage of the new-product development process. A) business feasibility B) feasibility study C) business analysis D) product acceptance E) concept testing
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Answer: C Diff: 2 Page Ref: 250 Skill: Concept
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30) 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 estimated before costs can be estimated. Which of the following did your text recommend for forecasting sales? A) considering the history of market opinions B) conducting surveys of competitors C) considering the sales history of similar products and conducting surveys of market opinions D) applying the PLC concept E) none of the above
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Answer: C Diff: 3 Page Ref: 250 Skill: Concept
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31) 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) strategy development E) product proposal
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Answer: B Diff: 2 Page Ref: 250 Skill: Concept
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32) In the ________ stage of new-product development, products undergo rigorous tests to make sure that they perform safely and effectively or that consumers will find value in them. A) business analysis B) idea generation C) concept development and testing D) product development E) marketing mix
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Answer: D Diff: 2 Page Ref: 251 Skill: Concept
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33) Once the prototype of Wainwright Industries' new riding lawnmower, made especially for women, passes product tests, the next step is ________. A) test marketing B) focus group surveys C) commercialization D) post-testing E) business analysis
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Answer: A Diff: 2 Page Ref: 251 Skill: Concept
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34) Bonneville Communications is concerned about test marketing its new device. Which of the following is NOT a disadvantage of test marketing that would likely concern Bonneville Communications? A) Test marketing costs can be high. B) It can take much time to test market. C) Test marketing allows time for competitors to gain advantages. D) People who are surveyed tend to tell less than the truth. E) Test marketing does not guarantee success.
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Answer: D Diff: 2 Page Ref: 251 Skill: Concept
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35) Under what circumstances might it be wise for a company to do little or no 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) when the costs of developing and introducing the product are low
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Answer: E Diff: 2 Page Ref: 251 Skill: Concept
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36) Although test marketing costs can be high, they are often small when compared with ________. A) the final results B) the costs of a major mistake C) management's approval and acceptance D) stockholders' confidence E) research and development costs
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Answer: B Diff: 2 Page Ref: 252 Skill: Concept
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37) Many marketers are now using new simulated marketing technologies, such as Frito-Lay's online virtual convenience store, to reduce the cost of ________. A) concept development B) concept testing C) marketing strategy development D) product development E) test marketing
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Answer: E Diff: 2 Page Ref: 252 Skill: Concept AACSB: Use of IT
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38) The major purpose of test marketing is to provide management with the information needed to make a final decision about ________. A) how to develop a market strategy 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
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Answer: C Diff: 2 Page Ref: 252 Skill: Concept
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39) Introducing a new product into the market is called ________. A) test marketing B) new product development C) experimenting D) commercialization E) marketing development
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Answer: D Diff: 1 Page Ref: 252 Skill: Concept
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40) Which of the following costs is most likely associated with the commercialization stage of new-product development? A) building or renting a manufacturing facility B) paying groups of target consumers for product feedback C) determining the product's planned price, distribution, and marketing budget D) developing a prototype of the product E) identifying target markets
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Answer: A Diff: 2 Page Ref: 252 Skill: Concept
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41) A company getting ready to launch a new product must make several decisions. 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) when to time the new product introduction E) when to develop a planned market rollout
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Answer: D Diff: 2 Page Ref: 252 Skill: Concept
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42) 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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Answer: A Diff: 2 Page Ref: 252 Skill: Concept
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43) Which of the following is necessary for successful new-product development? A) a holistic and sequential product development approach B) a customer-centered, team-based, systematic approach C) a team-based, innovation-management approach D) a market pioneer mindset and a holistic approach E) an innovation management system and sequential product development
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Answer: B Diff: 3 Page Ref: 253 Skill: Concept
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44) Which stage of the new-product development process focuses on finding new ways to solve customer problems and to create more customer-satisfying experiences? A) concept testing B) new-product development C) customer-centered new-product development D) sequential product development E) team-based new-product development
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Answer: C Diff: 1 Page Ref: 253 Skill: Concept
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45) ________ 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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Answer: C Diff: 2 Page Ref: 254 Skill: Concept
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46) In order to get their new products to market more quickly, many companies are adopting a faster, team-oriented approach called ________. A) simulated new-product development B) sequential product development C) team-based new-product development D) phased-in new-product development E) market development
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Answer: C Diff: 1 Page Ref: 254 Skill: Concept
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47) The team-based new-product development approach is faster because departments work closely together through ________. A) sequential efforts B) a step-by-step process C) the help of a consultant D) cross-functional teams E) departmentalization
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Answer: D Diff: 2 Page Ref: 254 Skill: Concept AACSB: Communication
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48) The team-based new-product development approach uses cross-functional teams that overlap the steps in the process to achieve which of the following 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 risks E) B and D
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Answer: B Diff: 2 Page Ref: 254 Skill: Concept
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49) Which of the following is a disadvantage of a team-based approach to new-product development? A) It takes longer to get the right products to market. B) The development effort is not as effective because of team members' lack of expertise. C) Levels of risk can be more easily controlled. D) Organizational confusion and tension can affect the process. E) The process does not work with the shorter life cycles of many of today's products.
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Answer: D Diff: 2 Page Ref: 254 Skill: Concept
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50) Top management can install a(n) ________ to direct the flow of new-product ideas to a central point where they can be collected, reviewed, and evaluated. A) idea evaluation system B) innovation management system C) database D) market strategy E) data processing system
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Answer: B Diff: 2 Page Ref: 254 Skill: Concept AACSB: Communication
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51) The search for new-product ideas should be ________ rather than ________. A) intermittent: continuous B) systematic: haphazard C) segmented: holistic D) impulsive: strategic E) employee-centered: customer-centered
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Answer: B Diff: 2 Page Ref: 254 Skill: Concept AACSB: Communication
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52) The innovation management system approach yields two favorable outcomes: it helps create an innovation-oriented company culture, and it ________. A) clearly assigns responsibility for the process B) yields a larger number of new-product ideas C) guarantees successful products D) frees up senior management time E) requires less budget support
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Answer: B Diff: 3 Page Ref: 256
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53) ________ is the product life cycle period when sales fall off and profits drop. A) Introduction B) Growth C) Maturity D) Decline E) Development
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Answer: D Diff: 1 Page Ref: 257 Skill: Concept
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54) Increasing profits will most likely occur at which stage of the PLC? A) product development B) introduction C) growth D) maturity E) decline
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Answer: C Diff: 1 Page Ref: 257 Skill: Concept
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55) Which stage of the typical consumer product life cycle is out of order below? A) product development B) introduction C) maturity D) growth E) decline
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Answer: C Diff: 2 Page Ref: 257 Skill: Concept
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56) All of the following are stages in the PLC, EXCEPT which one? A) introduction B) adoption C) growth D) decline E) maturity
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Answer: B Diff: 2 Page Ref: 257 Skill: Concept
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57) Some products that have entered the decline stage have been cycled back to the growth stage through ________. A) repositioning B) concept testing C) business analysis D) innovation management E) customer-centered product development
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Answer: A Diff: 2 Page Ref: 257 Skill: Concept
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58) Which of the following CANNOT be described using the PLC concept? A) product class B) product form C) product image D) brand E) styles
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Answer: C Diff: 3 Page Ref: 258 Skill: Concept
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59) All of the following are accurate descriptions of a style, EXCEPT which one? A) Styles 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) Styles are basic and distinctive modes of expression.
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Answer: D Diff: 2 Page Ref: 258 Skill: Concept
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60) The PLC concept can be applied by marketers as a useful framework for describing how ________. A) to forecast product performance B) to develop marketing strategies C) products and markets work D) concept testing is conducted E) product ideas are developed
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Answer: C Diff: 3 Page Ref: 258 Skill: Concept
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61) Using the PLC concept to develop marketing strategy can be difficult because strategy is both a ________ and a(n) ________ of the product's life cycle. A) mirror image: cause B) cause: result C) result: mirror image D) beginning: end E) purpose: effect
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Answer: B Diff: 3 Page Ref: 259 Skill: Concept
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62) In which stage of the PLC will promotional expenditures be especially high in an attempt to create consumer awareness? A) product development B) introduction C) growth D) maturity E) adoption
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Answer: B Diff: 1 Page Ref: 259 Skill: Concept
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63) In which stage of the PLC would promotional expenditures most likely increase as a company attempts to react to increasing competition? A) product development B) introduction C) growth D) maturity E) decline
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Answer: C Diff: 2 Page Ref: 259 Skill: Concept
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64) In the ________ stage, the firm faces a trade-off between high market share and high profit. A) growth B) decline C) maturity D) introduction E) commercialization
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Answer: A Diff: 2 Page Ref: 260 Skill: Concept
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65) Which stage in the PLC normally lasts longer and poses strong challenges to the marketing managers? A) introduction B) growth C) maturity D) decline E) phase-in
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Answer: C Diff: 2 Page Ref: 261 Skill: Concept
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66) Most products in the marketplace are in the ________ stage of the product life cycle. A) development B) introduction C) growth D) maturity E) decline
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Answer: D Diff: 2 Page Ref: 261 Skill: Concept
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67) Which of the following would lead to greater competition in the maturity stage of the PLC? A) overcapacity of products in the market B) market pioneers C) poor management D) inadequate promotion E) diminishing budgets
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Answer: A Diff: 2 Page Ref: 262 Skill: Concept
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68) When a product enters the maturity stage, the company should consider ________. A) harvesting the product B) modifying the product, market, or marketing mix C) divesting the product D) maintaining the product E) dropping the product
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Answer: B Diff: 2 Page Ref: 262 Skill: Concept
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69) Which of the following best represents the options a company has when a product is declining? A) maintain or harvest the product B) harvest or drop the product C) maintain, harvest, or drop the product D) maintain or pioneer the product E) pioneer, harvest, or maintain the product
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Answer: C Diff: 2 Page Ref: 263 Skill: Concept
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70) A manufacturer with a product in the decline stage of the product life cycle might decide to ________ if it has reason to hope that competitors will leave the industry. A) harvest the product B) maintain the product without change C) drop the product D) search for replacements E) delay planning
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Answer: B Diff: 2 Page Ref: 263 Skill: Concept
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71) Carrying a weak product during the decline stage of the PLC can be very costly to a firm, and not just in profit terms. Which one of these is NOT likely to be one of those costs? A) takes up much of management's time B) frequent price and inventory adjustment C) requires advertising and sales force attention D) few customer concerns about company image E) all of the above
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Answer: D Diff: 2 Page Ref: 263 Skill: Concept
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72) Because of ________, a company cannot make its product illegally similar to a competitor's already established product. A) anti-monopoly laws B) patent laws C) the Consumer Product Safety Act D) product warranties E) product liability
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Answer: B Diff: 2 Page Ref: 265 Skill: Concept AACSB: Ethical Reasoning
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73) Which of the following best describes the role of a product steward? A) to protect consumers from harm B) to evaluate new-product ideas against a set of general criteria C) to develop a product concept into a physical product D) to protect the company from liability by identifying and solving potential product problems E) A and D
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Answer: E Diff: 2 Page Ref: 265 Skill: Concept AACSB: Ethical Reasoning
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74) The advantages of standardizing an international product include all of the following EXCEPT ________. A) the development of a consistent image B) lower product design costs C) the adaptation of products to different markets D) decreased manufacturing costs E) lower marketing costs
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Answer: C Diff: 2 Page Ref: 265-266 Skill: Concept
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75) Because names, labels, and colors may not easily translate from one country to another, international marketers must carefully assess ________. A) product safety regulations B) market rollout C) the product life cycle D) packaging E) styles
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Answer: D Diff: 2 Page Ref: 268 Skill: Concept AACSB: Multicultural and Diversity
