Marketing Chapter 8 (Test Bank) – Flashcards
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The new product development process usually starts with ________.
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idea generation
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Which of the following statements is most likely true about the new product development process?
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Customers, competitors, and suppliers are major sources of new product ideas.
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Which of the following is an internal source of new product ideas for a company?
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intrapreneurial programs
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Internal sources of new product ideas for a company include its ________.
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employees
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In which of the following cases is crowdsourcing used for new product development?
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A company creates a forum where anyone can contribute new product ideas.
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A company's external sources of new product ideas include its ________.
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suppliers
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Kallton is a multinational communications and information technology corporation. Its principal products are mobile telephones and tablets. It recently announced on its Web site that customers can suggest ideas for its upcoming product model. Contributors of short-listed ideas will be adequately rewarded. In this case, Kallton is using ________ to generate new product ideas.
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crowdsourcing
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Which statement is most likely true about idea generation in the new product development process?
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Idea generation is usually followed by procedures that reduce the total number of ideas.
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Quest Inc. recently conducted a brainstorming session that generated a large number of ideas for adding new products and services. Quest managers will most likely use ________ next to arrive at a realistic number of ideas to adopt.
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idea screening
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Which of the following steps of the new product development process would most likely use an R-W-W framework?
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idea screening
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A product concept is ________.
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a detailed version of a product idea stated in meaningful consumer terms
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A ________ is the way consumers perceive an actual or potential product.
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product image
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The stage in which a product concept is presented to groups of target consumers physically or symbolically is referred to as ________.
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concept testing
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In a sequential new product development process, concept testing is most likely to be followed by ________.
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marketing strategy development
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The first part of a marketing strategy statement describes the ________ of a new product.
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target market
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The second part of a marketing strategy statement describes the ________ of a new product.
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planned price
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The third part of a marketing strategy statement describes the ________ of a new product.
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profit goals
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________ involves a review of the sales, costs, and profit projections for a new product to find out whether they satisfy a company's objectives.
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Business analysis
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Hollingsworth is a retail company that is planning to release a new line of luxury personal care products. Its managers are now reviewing the sales history of similar products and conducting marketing surveys to estimate minimum and maximum sales for the product. In which of the following stages of the new product development process is the product?
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business analysis
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In a sequential new product development process, which of the following is true of the product development step?
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Product development is usually followed by test marketing.
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In a sequential new product development process, once a product or service passes the business test, it moves into ________.
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product development
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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.
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product development
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If a product passes both the concept test and the product test, the next step is most likely to be ________.
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test marketing
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Wayne Industries, a retail and home improvement store, is developing a new lawnmower. The marketing strategy for the product has already been developed and presented. A prototype has also been developed by the company's R&D team. The prototype is now being tested rigorously to ensure that there are no product liability issues. Once the prototype of the lawnmower passes product tests, the next step is most likely to be ________.
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test marketing
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In which of the following cases is little or no test marketing most likely recommended for a new product?
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when the costs of developing and introducing the product are low
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Evans and Hills, a beverages manufacturing company, has developed a new line of specialty teas and is seeking regular input from the test marketing process. To facilitate this process, the firm uses BuyerScan, a software that generates store-by-store, week-by-week reports on the actual sales of tested products and the impact of in-store and in-home marketing efforts. Which of the following approaches does this scenario illustrate?
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controlled test markets
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________ is the stage where a product and its proposed marketing program are introduced into realistic market settings.
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Test marketing
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Using ________, researchers measure consumer responses to new products and marketing tactics in laboratory stores or virtual online shopping environments.
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simulated test markets
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Introducing a new product into the market is called ________.
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commercialization
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Which of the following costs is most likely associated with commercialization?
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building or renting a manufacturing facility
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A company launching a new product must first decide ________.
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when to launch the product
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Under a ________ new product development approach, company departments work closely together in cross-functional groups, overlapping the steps in the product development process to save time and increase effectiveness.
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team-based
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Under a ________ product development approach, one company department works to complete its stage of the product development process before passing the new product along to the next department and stage.
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sequential
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The team-based new product development approach saves times because departments work closely together in ________.
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cross-functional teams
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Which of the following is a disadvantage of a team-based approach to new product development?
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Organizational confusion and tension are likely to affect the process.
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When an end user's problems and experiences define a new product, the approach is called ________.
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customer-centered new product development
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At Fantastic Flavors, a large regional chain of candy stores, employees from marketing, design, production, and finance departments work in cross-functional groups to save time and money in the new product development process. From this description, it can be inferred that Fantastic Flavors uses a(n) ________ approach.
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team-based new product development
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An innovation management system would most likely be used by ________.
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brand managers to collect, review, and evaluate new product ideas
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________ is used to study the course of a product's sales and profits for the duration that it is produced and sold in the market.
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A product life cycle
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Which of the following statements is most likely true about the product life cycle?
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Growth is a period of rapid market acceptance and increasing profits.
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A product life cycle has five distinct stages: product development, introduction, growth, maturity, and ________.
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decline
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Which of the following is true of the product life cycle (PLC)?
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It is generally difficult to forecast the sales level at each PLC stage.
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Some products that have entered the decline stage can be cycled back to the growth stage through ________.
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repositioning
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Fads are characterized by their ________.
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unusually high sales and rapid decline
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Which of the following would most likely have the longest duration in a market and be characterized by several periods of renewed interest?
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a style
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Flurrbies, a line of winter accessories by a leading fashion label, quickly fell in and out of favor with customers. Flurrbies represents an example of a(n) ________.
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fad
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When a product hits the ________ stage, profits level off or decline because of increased marketing outlays to defend the product against competition.
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maturity
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In which stage of the product life cycle will promotional expenditures be significantly high in an attempt to create consumer awareness of a product and its features?
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introduction
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Which of the following is true about the introduction stage of a new product?
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Sales growth tends to be slow.
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In the ________ stage, a firm most likely faces a trade-off between high market share and high current profit.
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growth
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Which of the following is true of the growth stage of the product life cycle?
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Sales start climbing quickly.
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Craft Inc.'s Krayons is a multi-color chalk material that was released in the market over a century ago. Since the release, the company has had remarkable sales and Krayons has remained unchanged. However, over the last few years, sales of Krayons have been stagnant. Competitors have begun marking prices down, and increasing their advertising and sales promotions. Craft's Krayons is most likely in the ________ stage of the PLC.
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maturity
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Tavera, an automobile company, experienced a significant decline in sales over the last 10 months of its flagship car, Tetra. In response, Tavera reduced its R&D, advertising, and sales expenditures for Tetra in an attempt to improve short-run profits. Which term best describes Tavera's actions with regards to Tetra?
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product harvesting
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Parvon, a cleaning product, is in the maturity stage of the product life cycle, and Parvon managers have decided to modify the market. Which of the following steps should Parvon managers most likely take to achieve this goal?
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find new market segments for the brand
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Gershwin, a musical toy for toddlers, is in the maturity stage of the product life cycle, and Gershwin managers have decided to modify the product. What will Gershwin managers most likely do to achieve this goal?
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change the packaging of the toy
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A product is in the maturity stage of the product life cycle, and the company decides to modify the marketing mix. Which of the following steps is the company most likely to take?
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use aggressive sales promotions
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Which of the following is most likely true of a product in the maturity stage of the product life cycle?
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A slowdown occurs in sales growth.
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A product has hit the ________ stage when sales plunge to zero, or they drop to a low level where they continue for many years.
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decline
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As a result of ________, a company cannot make its product illegally similar to a competitor's already established product.
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patent laws
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Some companies are now appointing ________, whose job is to protect consumers from harm and the company from liability by proactively ferreting out potential product problems.
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product stewards
