Q: To create successful new products, a company must A. cut costs to keep the price of new products low B. obtain successful products through acquisitions instead of doing internal development C. focus their new product development efforts only on consumers D. understand itsâ consumers, markets, and competitors and develop products that deliver superior value E. spend more onâ R&D that its competitors

D. understand itsâ consumers, markets, and competitors and develop products that deliver superior value

Q: Intuit follows aâ \"Design for Delightâ (D4D)\" development philosophy that products should delight customers by providing experiences that exceed expectations. Which new product development approach is Intuitâ using? A. Crowdsourcing B. âCustomer-centered new product development C. Systematic new product development D. Marketing strategy development E. Team-based new product development

B. âCustomer-centered new product development

Q: When Dr. Lawncare developed his revolutionary new solar poweredâ lawnmower, he knew that during the introductory stage of the product lifecycleâ ___________. A. sales would be slow and profitsâ non-existent B. profits would rise quickly and there would be rapid market acceptance of his product. C. sales would fall and profits would drop D. sales would be slow and profits would level off or decline E. sales would be low but profits would be high

A. sales would be slow and profitsâ non-existent

Q: Which of the following would be an appropriate strategy during the maturity stage of the productâ lifecycle? A. Select products toâ maintain, harvest or drop. B. Use promotional spending to inform consumers and get them to try the product. C. Shift some advertising from building product awareness to building product conviction and purchase. D. Produce basic versions of the product and focus on selling to those buyers who are the most ready to buy. E. Modify theâ market, product offering and marketing mix

E. Modify theâ market, product offering and marketing mix

Question 1

To create successful new products, a company must A. cut costs to keep the price of new products low B. obtain successful products through acquisitions instead of doing internal development C. focus their new product development efforts only on consumers D. understand itsâ consumers, markets, and competitors and develop products that deliver superior value E. spend more onâ R&D that its competitors

Accepted Answer

D. understand itsâ consumers, markets, and competitors and develop products that deliver superior value

Question 2

Throughâ _____ a company can obtain new products by buying a wholeâ company, aâ patent, or a license to produce someoneâ else\'s product. A. product life cycle strategies B. internalâ R&D C. new product development D. acquisition E. idea generation

Accepted Answer

D. acquisition

Question 3

Which of the following statements about new product development strategy isâ correct? A. New products are usually successful because consumers like new things. B. A new product will succeed as long as it is priced correctly. C. New products are not a major source of growth for companies. D. Innovation can be very expensive and very risky. E. Good advertising creates successful new products.

Accepted Answer

D. Innovation can be very expensive and very risky.

Question 4

Which of the following statements concerning new products isâ correct? A. Modified and improved products are considered new. B. A modified product is not considered a new product. C. To be consideredâ new, the product must be something consumers have not seen before. D. Most new products succeed within two years of their introduction. E. Products that are merely improved in some way are not considered new.

Accepted Answer

A. Modified and improved products are considered new.

Question 5

Which of the following is an external source of new product ideas for aâ company? A. Trade magazines B. Innovation C. âR&D D. Hackathons E. Intrapreneurial programs

Accepted Answer

A. Trade magazines

Question 6

Goldtone is a multinational communications and information technology corporation. Its principal products are mobile telephones and tablets. It recently announced on its website that customers can suggest ideas for its upcoming product model. Contributors ofâ short-listed ideas will be adequately rewarded. In thisâ case, Goldtone is usingâ ________ to generate new product ideas. A. test marketing B. business analysis C. marketing strategy development D. crowdsourcing E. concept development

Accepted Answer

D. crowdsourcing

Question 7

crowdsourcing

Accepted Answer

The practice of obtaining needed services, ideas, or content by soliciting contributions from a large group of people and especially from the online community

Question 8

The Learning Institute recently conducted a brainstorming session that generated a large number of ideas for adding new products and services. Learning Institute managers will most likely useâ ________ next to arrive at a realistic number of ideas to adopt. A. idea screening B. concept testing C. concept development D. business analysis E. crowdsourcing

Accepted Answer

A. idea screening

Question 9

After ideas areâ screened, the next stage of the new product development process isâ _____. A. idea generation B. test marketing C. concept development and testing D. product development E. commercialization

Accepted Answer

C. concept development and testing

Question 10

At which stage of the new product development process is a physical product firstâ developed? A. Idea generation B. Concept development and testing C. Product development D. Test marketing E. Marketing strategy development

Accepted Answer

C. Product development

Question 11

At which stage of the new product development process is crowdsourcingâ used? A. Product development B. Idea generation C. Commercialization D. Idea screening E. Marketing strategy development

Accepted Answer

B. Idea generation

Question 12

A company launching a new product at the commercialization stage of new product development must first decide onâ ___________. A. the value proposition B. market share goals C. the target market D. profit goals E. introduction timing

Accepted Answer

E. introduction timing

Question 13

Installing an innovation management system toâ collect, review,â evaluate, and manage new product ideas representsâ a(n) ______________ approach to new product development. A. customer-centered B. crowdsourced C. sequential D. team-based E. systematic

Accepted Answer

E. systematic

Question 14

Intuit follows aâ \"Design for Delightâ (D4D)\" development philosophy that products should delight customers by providing experiences that exceed expectations. Which new product development approach is Intuitâ using? A. Crowdsourcing B. âCustomer-centered new product development C. Systematic new product development D. Marketing strategy development E. Team-based new product development

Accepted Answer

B. âCustomer-centered new product development

Question 15

Which of the following is NOT a product life cycleâ (PLC) stage? A. Introduction B. Decline C. Maturity D. Commercialization E. Growth

Accepted Answer

D. Commercialization

Question 16

When Dr. Lawncare developed his revolutionary new solar poweredâ lawnmower, he knew that during the introductory stage of the product lifecycleâ ___________. A. sales would be slow and profitsâ non-existent B. profits would rise quickly and there would be rapid market acceptance of his product. C. sales would fall and profits would drop D. sales would be slow and profits would level off or decline E. sales would be low but profits would be high

Accepted Answer

A. sales would be slow and profitsâ non-existent

Question 17

Most products are at which stage of their productâ lifecycle? A. Introduction B. Decline C. Product development D. Growth E. Maturity

Accepted Answer

E. Maturity

Question 18

Which of the following would be an appropriate strategy during the maturity stage of the productâ lifecycle? A. Select products toâ maintain, harvest or drop. B. Use promotional spending to inform consumers and get them to try the product. C. Shift some advertising from building product awareness to building product conviction and purchase. D. Produce basic versions of the product and focus on selling to those buyers who are the most ready to buy. E. Modify theâ market, product offering and marketing mix

Accepted Answer

E. Modify theâ market, product offering and marketing mix

Question 19

When a product is in the decline stage of theâ PLC, a company may reduce various costsâ (plant andâ equipment, maintenance,â R&D, advertising, salesâ force), hoping that sales hold up. In otherâ words, they areâ ________ the product. A. maintaining B. dropping C. milking D. harvesting E. growing

Accepted Answer

D. harvesting

Question 20

In the earlyâ 1970\'s, Gary Dahl sold pet rocks. The product had aâ short, temporary period of unusually high sales driven by consumer enthusiasm and immediate productâ popularity, but then sales declined very quickly. The PLC sales pattern for pet rocks is known asâ ______. A. a style B. a normal product life cycle curve C. a fad D. a failure E. a fashion

Accepted Answer

C. a fad

Question 21

Sales are risingâ rapidly, competitors are growing in number and the customers are early adopters. Which stage of the PLC does thisâ describe? A. Decline B. Maturity C. Introduction D. Product development E. Growth

Accepted Answer

E. Growth

Question 22

Which of the following statements is true regarding product life cycleâ curves? A. Marketers do not know the exact shape and length of theirâ product\'s life cycle in advance. B. Once a product reaches the declineâ stage, it cannot be recycled back to growth. C. All products follow the traditionalâ 5-stage PLC model. D. Marketing strategies do not change for different life cycle stages. E. Managing products through their life cycle is an easy task.

Accepted Answer

A. Marketers do not know the exact shape and length of theirâ product\'s life cycle in advance.

Question 23

To be more sociallyâ responsible, some companies are appointingâ _____________. Their job is to protect consumers from harm and the company from liability by proactively ferreting out potential product problems. A. product stewards B. product managers C. brand managers D. product champions E. attorneys

Accepted Answer

A. product stewards

Question 24

Which of the following statements regarding socially responsible product decisions isâ correct? A. Manufacturers are generally not concerned with product liability. B. When companies dropâ products, they do not have any obligations toâ suppliers, dealers and customers. C. Companies can safely ignore patent laws. D. The government may prevent companies from adding products through acquisitions if the effect threatens to decrease competition. E. Safety legislation has been passed to regulate chemical substances and drugs andâ poisons, but notâ toys, automobiles and fabrics.

Accepted Answer

D. The government may prevent companies from adding products through acquisitions if the effect threatens to decrease competition.

Question 25

Which of the following statements is true regarding standardizing products for internationalâ markets? A. Standardization increases productâ design, manufacturing, and marketing costs. B. Standardization helps a company develop a different image in different countries. C. Standardization decreases productâ design, manufacturing, and marketing costs. D. Markets and consumers all over the world areâ alike, so a company should always standardize international products. E. Standardization ensures that products will succeed in foreign markets.

Accepted Answer

C. Standardization decreases productâ design, manufacturing, and marketing costs.

Question 26

Which of the following statements is correct concerning service marketers goingâ global? A. Compared to productâ marketers, service marketers do not face any additional challenges when going global. B. The growth of global service companies is expected to decline in the near future. C. Due to the nature of theirâ business, professional service firms cannot expand their business to foreign markets. D. One industry that still has not globalized is retailing. E. The trend toward growth of global service companies is expected to continue in the near future.

Accepted Answer

E. The trend toward growth of global service companies is expected to continue in the near future.

Question 27

What are the two ways a firm can obtain newâ products? A. Acquisitions and external research and development B. Mergers and acquisitions C. Acquisitions and new product development D. New product development and external research and development E. New product development and existing product modification

Accepted Answer

C. Acquisitions and new product development

Question 28

To create successful newâ products, a company mustâ _______. A. cut costs to keep the price of new products low B. spend more onâ R&D than its competitors C. avoid innovation and only improveâ existing, successful products D. understand itsâ consumers, markets, andâ competitors, and develop products that deliver superior value E. wait and see what new products its competitors offer

Accepted Answer

D. understand itsâ consumers, markets, andâ competitors, and develop products that deliver superior value

Question 29

What is the first step in the new product developmentâ process? A. Screening new product ideas B. Setting the budget C. Building a prototype D. Generating new product ideas E. Consulting withâ R&D on the feasibility of the new product

Accepted Answer

D. Generating new product ideas

Question 30

Once management has decided on its product concept and marketingâ strategy, it can evaluate the business attractiveness of theâ proposal, which involvesâ ___________. A. conducting a business analysis B. conducting concept testing C. introducing the new product to the market D. conducting test marketing E. building and testing a prototype

Accepted Answer

A. conducting a business analysis

Question 31

During the introductory stage of the productâ lifecycle, ______________. A. profits rise quickly and there is rapid market acceptance of the product B. sales fall and profits decline C. sales rise quickly and profits are high D. sales riseâ quickly, but profits are nonexistent E. sales are slow and profits nonexistent

Accepted Answer

E. sales are slow and profits nonexistent

Question 32

Which stage of the product lifecycle normally lasts longer than the previous stages and poses strong challenges to marketingâ management? A. Growth B. Introduction C. Product development D. Maturity E. Decline

Accepted Answer

D. Maturity

Question 33

Which of the following statements regarding socially responsible product decisions isâ correct? A. Manufacturers are generally not concerned with product liability. B. When companies dropâ products, they do not have any legal obligations toâ suppliers, dealers, and customers. C. The government may prevent companies from adding products through acquisitions if the effect threatens to lessen competition. D. Manufacturers are not required to comply with laws regarding product quality and safety. E. Consumers who have been injured by a product with a defective design cannot sue manufacturers or dealers.

Accepted Answer

C. The government may prevent companies from adding products through acquisitions if the effect threatens to lessen competition.

Question 34

Which of the following statements regarding the marketing of international products and services isâ correct? A. Markets and consumers all over the world areâ alike, so a company should always standardize international products. B. Because markets and consumers around the world differâ widely, companies must usually adapt their product offerings in different world markets. C. Markets and consumers around the world are now so similar that international product and services marketers no longer face special challenges when marketing in foreign countries. D. Advertising is one service industry that has not needed to globalize its operations. E. The trend toward growth of global service companies will not continue and will actually decline.

Accepted Answer

B. Because markets and consumers around the world differâ widely, companies must usually adapt their product offerings in different world markets.

Question 35

â________ refers to setting price based onâ buyers\' perception of value rather than on theâ seller\'s cost. A. Customerâ value-based pricing B. Good-value pricing C. Cost D. Cost-based pricing E. Value-added pricing

Accepted Answer

A. Customerâ value-based pricing

Question 36

Which of the following is aâ cost-oriented pricingâ approach? A. Competition-based pricing B. Breakeven pricing C. EDLP pricing D. âHigh-low pricing E. Value added pricing

Accepted Answer

B. Breakeven pricing

Question 37

âNew, premium movie theaters offer features such as online reservedâ seating, high-backed leather executive chairs with armrests andâ footrests, the latest in digitalâ sound, super-wideâ screens, and other amenities for which they charge a higher price. This is an example of which type ofâ pricing? A. âValue-added pricing B. Cost-plus pricing C. EDLP pricing D. Breakeven pricing E. âHigh-low pricing

Accepted Answer

A. âValue-added pricing

Question 38

âSadie\'s Restaurant has listened to its customers over the years and is now able to offer the right combination of quality and good service at a fair price. Which pricing strategy isâ Sadie\'s using? A. âHigh-low pricing B. Cost-based pricing C. Value added pricing D. Breakeven pricing E. âGood-value pricing

Accepted Answer

E. âGood-value pricing

Question 39

âGeared2Beer, a craft beerâ brand, identifies a market segment that is willing to pay premium prices for its craftâ beer, and Geared2Beer managers select an ideal selling price. Managers then determine the costs to create craft beer that meets the ideal selling price. Theâ company\'s pricing approach is referred to asâ ________. A. âcost-plus pricing B. value-added pricing C. EDLP D. target costing E. target return pricing

Accepted Answer

D. target costing

Question 40

Internal factors that affect pricing includeâ ________. A. Theâ company\'s overall marketingâ strategy, objectives and the nature of the market B. The nature of theâ market, demand, and the economy. C. theâ company\'s overall marketingâ strategy, objectives, and marketing mix D. Theâ company\'s overall marketingâ strategy, the nature of theâ market, and demand. E. theâ company\'s overall marketingâ strategy, objectives and demand

Accepted Answer

C. theâ company\'s overall marketingâ strategy, objectives, and marketing mix

Question 41

Which of the following is true regarding theâ price-demand relationship? A. Demand and price are directly related dash- the higher theâ price, the greater the demand. B. Price elasticity measures how responsive price will be to a change in demand. C. If demand isâ elastic, sellers will consider lowering their price. D. A demand curve shows the number of units a company will produce in a given time period at different prices that might be charged. E. If demand isâ inelastic, a small change in price will result in a large change in demand.

Accepted Answer

C. If demand isâ elastic, sellers will consider lowering their price.

Question 42

Which of the following statements is true regarding oligopolisticâ competition? A. The market consists of many buyers and sellers trading over a range of prices. B. Each seller is alert and responsive toâ competitors\' pricing strategies and marketing moves C. The market consists of many large sellers. D. The market is dominated by one seller. E. Many buyers and sellers trade a uniform commodity.

Accepted Answer

B. Each seller is alert and responsive toâ competitors\' pricing strategies and marketing moves

Question 43

One major objective associated with aâ market-penetration pricing strategy is toâ ________. A. prevent customer dissatisfaction B. win a large market share C. avoid everyday low pricing D. attract buyers willing to pay a higher price E. skim off small but profitable market segments

Accepted Answer

B. win a large market share

Question 44

A company has set a low price on a new product it introduced. It wants to maximize its market share and attract a large number of buyers quickly. Which new product pricing strategy should the companyâ use? A. product bundle pricing B. psychological pricing C. market-skimming pricing D. âcaptive-product pricing E. âmarket-penetration pricing

Accepted Answer

E. âmarket-penetration pricing

Question 45

When Apple Computer Company introduced itsâ iPhone, its priced the new product atâ $599, considerably higher than either their iPod or competing cellular phones. Apple Computer was pursuing aâ ___________________ new product pricingâ strategy.  A. âby-product B. âoptional-product C. market-penetration D. captive-product E. market-skimming

Accepted Answer

E. market-skimming

Question 46

Gillette charges a fairly low price for its razorsâ (relative toâ costs) and a high price for razor blades. It is using a strategy ofâ ___________ pricing. A. âby-product B. two-part pricing C. captive-product D. product-bundle E. product line

Accepted Answer

C. captive-product

Question 47

Bathâ & Body Works offersâ \"three-fer\" deals on its soaps and lotionsâ (such as three antibacterial soaps forâ $10). This is an example ofâ _______ pricing. A. âcaptive-product B. âby-product C. two-part pricing D. product line E. âproduct-bundle

Accepted Answer

E. âproduct-bundle

Question 48

A car buyer can choose a base model at oneâ price, or one with a premium sound and navigation system at a higher price. This is an example ofâ _______ pricing. A. product line B. product-bundle C. optional-product D. by-product E. captive-product

Accepted Answer

C. optional-product

Question 49

The Ford Mustang is offered in several different models. Ford will useâ __________ pricing to determine the price steps between the different models. A. âoptional-product B. two-part pricing C. product-bundle D. captive-product E. product line

Accepted Answer

E. product line

Question 50

Many state colleges and universities charge one price forâ in-state students and a higher price forâ out-of-state students. Which form of segmented pricing are these schoolsâ using? A. promotional pricing B. âcustomer-segment pricing C. product form pricing D. âlocation-based pricing E. time-based pricing

Accepted Answer

D. âlocation-based pricing

Question 51

Companies that useâ ________ continually adjust prices to meet the characteristics and needs of individual customers and situations. A. dynamic pricing B. psychological pricing C. promotional pricing D. cash rebates E. segmented pricing

Accepted Answer

A. dynamic pricing

Question 52

Margaret has been invited to a fancy dinner party and wants to bring a good bottle of wine as a gift for the host. Since she does not know much aboutâ wine, she will likely use the price of the wines asâ ________. A. a limited time offer B. a type of segmented pricing C. an indicator of quality D. an indicator of geographic pricing E. an indicator of the cost of production

Accepted Answer

C. an indicator of quality

Question 53

UPS charges different prices for shipping depending on anâ item\'s destination. The more distant the city the package is being shippedâ to, the higher the price UPS charges. Which geographic pricing method is UPSâ using? A. Zone pricing B. Uniform-delivered pricing C. âBase-point pricing D. âFreight-absorption pricing E. FOB origin

Accepted Answer

A. Zone pricing

Question 54

A retailer temporarily prices a few select items below cost to create excitement and pull consumers into the store. This is an example ofâ _________ pricing. A. segmented B. psychological C. optional product D. promotional E. geographical

Accepted Answer

D. promotional

Question 55

Which of the following statements is true regarding initiating priceâ cuts? A. Cutting prices in an industry loaded with excess capacity may lead to price wars. B. Cutting price has no effect on costs. C. Firms never cutâ prices; they only raise them. D. If faced with excessâ capacity, a firm should not cut its price. E. When faced with fallingâ demand, firms should not cut prices.

Accepted Answer

A. Cutting prices in an industry loaded with excess capacity may lead to price wars.

Question 56

Which of the following statements is true regarding initiating priceâ increases? A. Cost inflation is not a factor in price increases. B. Whereverâ possible, the company should consider ways to meet higher costs or demand without raising prices. C. Companies do not need to communicate reasons for price increases to customers. D. Price increases do not impact profits. E. Prices should be increased when there is a lack of demand.

Accepted Answer

B. Whereverâ possible, the company should consider ways to meet higher costs or demand without raising prices.

Question 57

Which of the following is a potentially effective action a company could take in response to aâ competitor\'s priceâ cut? A. Decrease perceived value B. Reduce price C. Raise price D. Launch aâ high-price \"fighterâ brand\" E. Reduce both price and quality.

Accepted Answer

B. Reduce price

Question 58

Over theâ years, U.S. air carriers have been accused numerous times of collusion when setting prices. This illegal practice is calledâ _______. A. price fixing B. deceptive pricing C. predatory pricing D. retail price maintenance E. price discrimination

Accepted Answer

A. price fixing

Question 59

Selling below cost with the intention of punishing a competitor or gaining higherâ long-run profits by putting competitors out of business is an illegal practice calledâ _______. A. deceptive pricing B. price discrimination C. price fixing D. price maintenance E. predatory pricing

Accepted Answer

E. predatory pricing

Question 60

The priceâ ceiling, the maximum price a company canâ charge, is set byâ ________. A. customer perceptions of theâ product\'s value B. the marketing mix C. revenue D. product costs E. competitors

Accepted Answer

A. customer perceptions of theâ product\'s value

Question 61

What are the three major pricing strategies used byâ marketers? A. Customerâ value-based pricing,â cost-based pricing, andâ revenue-based pricing B. Customerâ value-based pricing,â cost-based pricing, andâ government-based pricing C. Customerâ value-based pricing,â cost-based pricing, andâ competition-based pricing D. Demand-based pricing,â cost-based pricing, andâ competition-based pricing E. âDemand-based pricing,â revenue-based pricing, andâ government-based pricing

Accepted Answer

C. Customerâ value-based pricing,â cost-based pricing, andâ competition-based pricing

Question 62

Which of the following statements is true regarding how price might play an important role in helping to accomplish companyâ objectives? A. Pricing has no effect on customer loyalty. B. Pricing one product has no effect on the sales of other products. C. Pricing can create excitement for a brand. D. Pricing has no effect on the loyalty and support of resellers. E. Pricing is not subject to government intervention.

Accepted Answer

C. Pricing can create excitement for a brand.

Question 63

Internal factors that affect pricing includeâ ________. A. theâ company\'s overall marketingâ strategy, the nature of theâ market, and demand B. theâ company\'s overall marketingâ strategy, objectives, marketingâ mix, and other organizational considerations. C. theâ company\'s overall marketingâ strategy, objectives, and the nature of the market D. theâ company\'s overall marketingâ strategy, objectives, and demand E. the nature of theâ market, demand, and the economy

Accepted Answer

B. theâ company\'s overall marketingâ strategy, objectives, marketingâ mix, and other organizational considerations.

Question 64

A company has set a low price on a new product it introduced. It wants to maximize its market share and attract a large number of buyers quickly. Which new product pricing strategy should the companyâ use? A. Product bundle pricing B. Market-penetration pricing C. Market-skimming pricing D. Product line pricing E. âCaptive-product pricing

Accepted Answer

B. Market-penetration pricing

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