Question 1

A major implication of the diffusion process to marketing managers is that:

Accepted Answer

based on how various categories of adopters gather product information.

Question 2

In the context of the product life cycle, which of the following is true of a product\'s growth stage?

Accepted Answer

Competition intensifies as more competitors enter the market.

Question 3

How does the product life cycle concept help marketing managers?

Accepted Answer

It helps marketers forecast future events and suggest appropriate strategies

Question 4

In the early stage of development, _____ is sometimes used to create three-dimensional prototypes quickly and at a relatively low cost.

Accepted Answer

additive manufacturing

Question 5

Italiano, an American restaurant, experienced increased sales and high profits in the initial years of its establishment. Recently, it faced increased competition. To rebuild its brand, Italiano starts expanding its distribution network and aggressively promotes its restaurant. In this scenario, Italiano is in the _____ of the product life cycle.

Accepted Answer

growth stage

Question 6

For a long time, baking soda was used only as a cooking ingredient. Recently, Nails & Hammer Co., a construction firm, began marketing baking soda as an odor absorbent. The company promoted its use in absorbing foul odors in homes. In this scenario, baking soda would fall in the new product category of:

Accepted Answer

repositioned products.

Question 7

In the context of adopters who participate in the diffusion process, which of the following statements is true of innovators?

Accepted Answer

They are worldly and active outside their community

Question 8

_____ is the degree to which a new product is consistent with existing values and product knowledge, past experiences, and current needs.

Accepted Answer

Compatibility

Question 9

In the new-product development process, which of the following statements is true of the development stage?

Accepted Answer

Marketing department decides on the product\'s packaging, branding, labeling, and so forth.

Question 10

In a new-product development process, _____ is the stage that involves the decision to market a product.

Accepted Answer

commercialization

Question 11

In a product development process, _____ is the stage to eliminate ideas that are inconsistent with an organization\'s new-product strategy or are obviously inappropriate for some other reason.

Accepted Answer

screening

Question 12

In the diffusion process, unlike innovators, early adopters:

Accepted Answer

rely more on group norms and values than innovators.

Question 13

In the context of adopters who participate in the diffusion process, unlike the early majority, _____.

Accepted Answer

laggards\' independence is rooted in their ties to tradition.

Question 14

In a product development process, which of the following is a disadvantage of test marketing?

Accepted Answer

It exposes the new product and its marketing mix to competitors before its introduction.

Question 15

The rate of acceptance and diffusion of a new product will be faster when:

Accepted Answer

the benefits of using the product can be observed by others.

Question 16

Vilante Corp., a television manufacturing firm, is facing declining profits due to slow sales. Therefore, it offers promotions to consumers and dealers to maintain its market share. To distinguish its products from its competitors, it redesigns its television models stylistically. It also increases the product warranty from one to three years. In this scenario, Vilante Corp.\'s products are in the _____ of the product life cycle.

Accepted Answer

maturity stage

Question 17

Which of the following statements best defines the term diffusion?

Accepted Answer

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

Question 18

Which of the following statements is true of the maturity stage of the product life cycle (PLC)?

Accepted Answer

New users cannot be added indefinitely during this stage.

Question 19

In the context of product life cycle, which of the following statements is true of the introductory stage?

Accepted Answer

Marketing costs are normally high.

Question 20

In the context of the new-product development process, _____ is the stage at which laboratory tests are conducted on prototypes.

Accepted Answer

development

Question 21

Elegance Inc., a clothing store based in the United States, manufactures, markets, and sells women\'s apparel. It recently launched a new line of men\'s apparel to diversify its market. It invests heavily on advertisement and dealership as it wants to reach a wide customer base. Despite these efforts, Elegance Inc. is experiencing slow sales with negative profits due to the huge investment in the new product line. According to the product life cycle concept, Elegance Inc.\'s men\'s apparel is in the _____ of its life cycle.

Accepted Answer

introductory stage

Question 22

In a new-product development process, _____ is the stage where preliminary figures for demand, cost, sales, and profitability are calculated.

Accepted Answer

business analysis

Question 23

A difference between absolute failure and relative failure is that absolute failure:

Accepted Answer

occurs when a company fails to recoup its development, marketing, and production costs.

Question 24

Which of the following statements is true of a new-product development strategy?

Accepted Answer

It provides general guidelines for generating, screening, and evaluating new-product ideas.

Question 25

In the context of new-product development from a worldwide perspective, global marketers:

Accepted Answer

design their products to meet regulations in their major markets.

Question 26

In the context of new-product development, which of the following is a global strategy adopted by multinational corporations?

Accepted Answer

They develop all their products for potential worldwide distribution.

Question 27

_____ is the limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation.

Accepted Answer

Test marketing

Question 28

Which of the following statements is true of the product life cycle (PLC)?

Accepted Answer

The PLC allows the analysis of a brand, a product form, or a product strategy.

Question 29

Which of the following is true of simultaneous product development?

Accepted Answer

It involves all relevant functional areas and outside suppliers in all stages of the development process.

Question 30

Konnekt, a manufacturer of electronic goods, experienced a long-run drop in the sales of its radios after the diffusion of televisons in the market. Lately, there have been no sales of its radios, whereas its televisions are witnessing increased sales. Therefore, Konnekt is no longer marketing its radios but investing extensively in the promotion of its televisions. In this scenario, Konnekt\'s radios are in the _____ of its product life cycle.

Accepted Answer

decline stage

Question 31

A major implication of the diffusion process to marketing managers is that:

Accepted Answer

the targeted adopter and media may need to shift based on how various categories of adopters gather product information.

Question 32

One of the reasons for the new-product failures is that the products:

Accepted Answer

offer no discernible benefits compared to existing products.

Question 33

An implication of the new-product development process on marketing managers is that:

Accepted Answer

many new-product ideas are necessary to produce one successful new product.

Question 34

Which of the following statements is true of a customer innovation center?

Accepted Answer

It is a forum for meeting with customers and directly involving them in the innovation process.

Question 35

Marketing costs are high in the introductory stage of the product life cycle because:

Accepted Answer

high dealer margins are often needed to obtain adequate distribution.

Question 36

Identify a true statement about the maturity stage of the product life cycle (PLC).

Accepted Answer

Niche marketers that target the under-served segments of a market emerge during this stage.

Question 37

In the context of the new-product development process, the decision to market a product is made during _____.

Accepted Answer

commercialization

Question 38

In the context of the product characteristics that can be used to predict and explain the rate of acceptance and diffusion, the degree of difficulty involved in understanding and using a new product is known as _____.

Accepted Answer

complexity

Question 39

Which of the following is an advantage of simultaneous product development?

Accepted Answer

It shortens the development process and reduces costs.

Question 40

Which of the following statements is true of opinion leaders?

Accepted Answer

They speed up the diffusion process through word-of-mouth communication.

Question 41

Which of the following statements best describes simultaneous product development?

Accepted Answer

It is the process where all the involved areas work together rather than sequentially during a product\'s development

Question 42

Which of the following is a characteristic of products produced by multinational corporations?

Accepted Answer

Products are developed to meet unique market requirements whenever possible.

Question 43

In the context of adopters who participate in the diffusion process, which of the following statements is true of laggards?

Accepted Answer

They have the longest adoption time and the lowest socioeconomic status.

Question 44

In the context of research and development, which of the following is true of product development?

Accepted Answer

It converts applications into marketable products

Question 45

In the context of adopters who participate in the diffusion process, which of the following individuals is most likely to be a part of the early majority?

Accepted Answer

Stephen always purchases a product after doing an in-depth research on its pros and cons.

Question 46

A major implication of the diffusion process to marketing managers is that:

Accepted Answer

the targeted adopter and media may need to shift based on how various categories of adopters gather product information.

Question 47

In the context of adopters who participate in the diffusion process, which of the following statements is true of innovators?

Accepted Answer

They are characterized as being deliberate and skeptical.

Question 48

The _____ is a biological metaphor that traces the stages of a product\'s acceptance, from its introduction to its decline.

Accepted Answer

product life cycle

Question 49

In a product development process, _____ is the stage to eliminate ideas that are inconsistent with an organization\'s new-product strategy or are obviously inappropriate for some other reason.

Accepted Answer

screening

Question 50

In the context of product life cycle, which of the following statements is true of the introductory stage?.

Accepted Answer

Marketing costs are normally high.

Question 51

The final stage in the new-product development process is _____.

Accepted Answer

commercialization

Question 52

Mercury Corp., an audio equipment manufacturing company, has launched Merc 360x headphones in the market. The product is of an unconventional, skull-shaped design. In this scenario, which of the following is likely to happen to Merc 360x headphones in this stage of the life cycle?

Accepted Answer

Sales will increase slowly and profits will be negative

Question 53

Which of the following statements is true of the decline stage of the product life cycle?

Accepted Answer

The rate of consumers\' adoption of substitute products governs the rate of decline of the product.

Question 54

_____ goes beyond applied research by converting applications into marketable products.

Accepted Answer

Product development

Question 55

The research and development (R&D) team at DataCom, a software firm, holds a meeting to discuss some potential ideas for new products. In the meeting, the moderator encourages everyone to share the ideas that comes to mind no matter how trivial it may seem. He prohibits employees from criticizing any idea and instead asks them to focus on giving the maximum number of ideas. In this scenario, the R&D team at DataCom is engaged in _____.

Accepted Answer

brainstorming

Question 56

The longest stage of the product life cycle (PLC) is the _____.

Accepted Answer

maturity stage

Question 57

In the context of adopters who participate in the diffusion process, which of the following statements is true of laggards?

Accepted Answer

They have the longest adoption time and the lowest socioeconomic status.

Question 58

Steve, a retired man, wants to open a day care facility for dogs with his savings. After deciding on the services that he would be providing to his customers, he calculates the preliminary figures for demand, cost, sales, and profitability. After extensive deliberation, Steve decides to take credit from the bank for opening the facility as the initial investment cost estimates are too high. Steve is currently at the _____ of the new-product development process.

Accepted Answer

business analysis stage

Question 59

Magnira Corp. is an apparel manufacturing company. After an initial slow start, it saw a steep rise in its clientele and a remarkable increase in its profits. However, with the launch of other apparel manufacturers in the market, the profits of Magnira Corp. are declining now. In order to sustain its growth in the market, the managers of Magnira Corp. should:

Accepted Answer

shift to aggressive brand advertising and open new branches.

Question 60

Steven, a construction worker, always buys new gadgets because most of his friends have them. Besides, he relies on reviews from his friends rather than on the mass media to make his purchase decisions. It can be inferred that Steven belongs to the category of _____ in the diffusion process.

Accepted Answer

the late majority

Question 61

For conducting an accurate test marketing, ----_____.

Accepted Answer

test locations should mirror the purchasing habits of the overall market

Question 62

In the context of adopters who participate in the diffusion process, a difference between early adopters and the early majority is that the early majority are:

Accepted Answer

likely to collect more information and evaluate more brands.

Question 63

_____ is the degree to which a product can be sampled on a limited basis.

Accepted Answer

âTrialability

Question 64

Nutrioats, an oatmeal cookie product, has been in the market for over seven years. However, the product is now in its decline stage. In this case, which of the following will be a successful strategy to market Nutrioats?

Accepted Answer

Eliminating all nonessential marketing expenses and letting sales decline

MGMT 322 Marketing Management- Chapter 11 Developing and Managing Products – Flashcards

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