Chapter 9 New-Product Development and Product Life-Cycle Strategies

1) What are the two ways that a company can obtain new products?
A) line extension and brand management
B) internal development and brand management
C) new-product development and acquisition
) service development and product extension
!) mar"et mix modi#ication and research and development
Answer$ C
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%) &roduct improvements. product modi#ications. and original products can all be classi#ied as
 ////////0
A) pioneer products
B) new products
C) product concepts
) product ideas
!) test products
Answer$ B
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) Which o# the #ollowing is 2+3 a potential reason #or a new product to #ail?
A) an underestimated mar"et si4e
B) a poorly designed product
C) an incorrectly positioned product
) higher than anticipated costs o# product development
!) ine##ective advertising
Answer$ A
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9) Which o# the #ollowing is 2+3 a challenge presented by the product li#e cycle that a #irm
must #ace?
A) All products eventually decline0
B) Changing tastes. technologies. and competition a##ect the mar"eting o# the product as it passes
through li#ecycle stages0
C) A #irm must be good at developing new products to replace aging ones0
) A #irm must be good at adapting its mar"eting strategies0
!) 7t is di##icult to plot the stages as a product goes through them0
Answer$ !
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() 3he creation o# a success#ul new product depends on a company:s understanding o# its

 //////// and its ability to deliver //////// to customers0
A) competitors. distributors. and employees; new styles
B) customers. brands. products; product images
C) customers. competitors. and mar"ets; superior value
) product. mar"eting mix. and mar"eting strategy; #unctional #eatures
!) product li#e cycle. legal responsibilities. and social responsibilities; innovations
Answer$ C
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<) 2ew product development starts with ////////0

A) idea generation
B) idea screening
C) concept development
) concept testing
!) test mar"eting
Answer$ A
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=) !xecutives. manu#acturing employees. and salespeople are all examples o# ////////0

A) external sources #or new-product ideas
B) internal sources #or new-product ideas
C) core members o# innovation management systems
) research and development team members
!) new-product committee members
Answer$ B
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) >our company decides to use internal sources #or developing new product ideas0 Which o# the
#ollowing would 2+3 be consulted?
A) executives and pro#essionals
B) company records and data
C) intrapreneurial programs
) suppliers
!) salespeople
Answer$ 
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) Which o# the #ollowing is perhaps the most important external source o# new-product ideas?
A) engineers
B) customers
C) competitors
) trade maga4ines. shows. and seminars
!) distributors and suppliers
Answer$ B
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16) Which o# the #ollowing is 2+3 a recommended method #or companies to tap into their
customers as sources #or new-product ideas?
A) analy4ing customer complaints and questions
B) relying heavily on customers to "now what types o# technical products they need
C) wor"ing alongside customers to get ideas and suggestions
) turning customers into cocreators
!) putting customer-created products on the mar"et
Answer$ B
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11) >our #irm as"s you to consult external sources #or new product ideas0 All o# the #ollowing are
common external sources !C!&3 ////////0
A) customers
B) suppliers
C) competitors
) trade shows and maga4ines
!) the #irm:s executives
Answer$ !
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1%) 3he purpose o# idea generation is to create a //////// number o# ideas0 3he purpose o#
succeeding stages is to //////// that number0
A) small number; reduce
B) small number; increase
C) large number; increase
) large number; reduce
!) limited number; sustain
Answer$ 
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1) @rayBerry @i#ts has ,ust brainstormed a large number o# ideas #or adding new products and
services a#ter visiting several buying #airs0 3he owners will begin the #irst idea-reducing stage.
called ////////. to arrive at a realistic number to adopt0
A) business analysis
B) idea generation
C) concept testing
) idea screening
!) concept development
Answer$ 
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19) Which o# the #ollowing is most li"ely to be included in an executive:s write up o# a new-
 product idea to be presented to a new-product committee?
A) the proposed customer value proposition
B) the product image
C) the mar"eting strategy
) the business analysis
!) the planned mar"er rollout
Answer$ A
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1() A detailed version o# a new idea stated in meaning#ul customer terms is called a ////////0
A) product idea
B) product concept
C) product image
) product proposal
!) product movement
Answer$ B
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1<) A //////// is the way consumers perceive an actual or potential product0

A) product idea
B) product concept
C) product image
) test mar"et
!) concept test
Answer$ C
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1=) An attractive idea must be developed into a ////////0

A) product idea
B) product concept
C) product image
) test mar"et
!) product strategy
Answer$ B
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1) //////// calls #or testing new-product concepts with groups o# target consumers0
A) Concept development
B) Concept testing
C) 7dea generation
) 7dea screening
!) 3est mar"eting
Answer$ B
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1) 7n the concept testing stage o# new-product development. a product concept in ////////
#orm is presented to groups o# target consumers0
A) physical or symbolic
B) prototype
C) #inal
) mar"et-tested
!) commercial
Answer$ A
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%6) With what groups do #irms conduct concept testing #or new products?
A) suppliers
B) employees
C) target customers
) manu#acturers
!) competitors
Answer$ C
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%1) or some ////////. a simple description consisting o# a word or picture might be su##icient0
A) concept tests
B) product concepts
C) mar"eting strategies
) product developments
!) business analyses
Answer$ A
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%%) A#ter concept testing. a #irm would engage in which stage in developing and mar"eting a
new product?
A) idea screening
B) mar"eting strategy development
C) business analysis
) product development
!) test mar"eting
Answer$ B
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%) 3he #irst part o# the mar"eting strategy statement describes the target mar"et; the planned
 product positioning; and goals #or sales. pro#its. and ////////0
A) mar"et share
B) competition
C) secondary mar"et
) competition:s anticipated reaction
!) li#e-cycle duration
Answer$ A
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%9) 3he second part o# the mar"eting strategy statement outlines the product:s planned price.
distribution. and //////// #or the #irst year0
A) advertising
B) promotion
C) mar"eting budget
) positioning
!) target mar"et
Answer$ C
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%() 3he third part o# the mar"eting strategy statement includes all o# the #ollowing !C!&3
 ////////0
A) long-run sales
B) pro#it goals
C) mar"eting mix strategies
) short-run sales
!) A and C
Answer$ 
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%<) A review o# the sales. costs. and pro#it pro,ections #or a new product to #ind out whether they
satis#y the company:s ob,ectives is called a ////////0
A) business #easibility plan
B) mar"eting strategy development
C) business analysis
) product acceptance
!) proposal
Answer$ C
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() Which stage in the &C is characteri4ed by rapid mar"et acceptance and increasing sales?
A) introduction
B) maturity
C) growth
) decline
!) development
Answer$ C
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(9) *ome products that have entered the decline stage have been cycled bac" to the growth stage
through ////////0
A) promotion or repositioning
B) concept testing
C) business analysis
) innovation management
!) customer-centered product development
Answer$ A
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(() All o# the #ollowing are stages in the &C !C!&3 ////////0
A) introduction
B) growth
C) maturity
) adoption
!) decline
Answer$ 
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(<) Which stage o# the typical consumer product li#e cycle is out o# order below?
A) product development
B) introduction
C) maturity
) growth
!) decline
Answer$ C
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