Question 1

Companies that combine a customer-centered approach with team-based new product development gain a big competitive edge by getting the right new products to market faster.

Accepted Answer

A) True 
 B)False

Question 2

A product life cycle has five distinct stages: product development, introduction, growth, maturity, and ________.

Accepted Answer

A)   stabilization
B)   rebranding
C)   decline
D)   progression
E)   segmentation

Question 3

The style, ease of use, and multi-blade technology of Gillette's Fusion razor system is a ________ that has favorably impacted consumer perceptions about other new products sold by the company.

Accepted Answer

A)   product audit
B)   product feature
C)   product image
D)   product framework
E)   product concept

Question 4

Colonial furniture has been in existence since the 1600s and continues to adorn homes today. According to the product life cycle concept, it would be described as a ________.

Accepted Answer

A)   style
B)   fashion
C)   fad
D)   trend
E)   drift

Question 5

The team-based new product development approach saves times and increases effectiveness because departments work closely together in ________.

Accepted Answer

A)   divisional teams
B)   problem-solving teams
C)   self-managed groups
D)   cross-functional teams
E)   independent groups

Question 6

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?

Accepted Answer

A)   product development
B)   introduction
C)   growth
D)   maturity
E)   adoption B

Question 7

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.

Accepted Answer

A)   business analysis
B)   idea generation
C)   concept screening
D)   product development
E)   test marketing

Question 8

Which of the following steps of the new product development process would most likely use an R-W-W framework?

Accepted Answer

A)   idea generation
B)   idea screening
C)   concept testing
D)   test marketing
E)   commercialization

Question 9

A sequential product development approach is team-oriented, enabling firms to bring products to market very quickly.

Accepted Answer

A) True 
 B)False

Question 10

The maturity stage of the product life cycle is characterized by a slowdown in sales growth.

Accepted Answer

A) True 
 B)False

Question 11

A company launching a new product must first decide ________.

Accepted Answer

A)   where to launch the product
B)   the sample size of the market
C)   when to launch the product
D)   the viability of a global launch
E)   the budget for print advertising

Question 12

Which of the following statements is most likely true about the new product development process?

Accepted Answer

A)   The first step in developing a new product involves determining any budgetary or distribution limitations.
B)   Most firms discourage employees from contributing new product ideas because of legal concerns.
C)   In most cases, concept testing is followed by concept development.
D)   A product concept should be developed for each idea before it goes through idea screening.
E)   Customers, competitors, distributors, and suppliers are major sources of new product ideas.

Question 13

The Dairy Bar, a national soft-service ice cream retailer, buys cones from Cones & More. Cones & More is an important resource for marketplace information. They're considered a(n) ________ source of new product ideas for the Dairy Bar.

Accepted Answer

A)   entrepreneurial
B)   competitive
C)   external
D)   internal
E)   intrapreuneurial

Question 14

An abstract presentation of a product concept is likely to increase the reliability of the concept test.

Accepted Answer

A) True 
 B)False

Question 15

Electronics International has experienced a significant decline in sales for SweetTunes, its MP3 player, during the past two years. In response, the company has reduced its advertising and sales expenditures for SweetTunes in an attempt to improve short-run profits. Which term best describes Electronics International's strategy for SweetTunes?

Accepted Answer

A)   sales outsourcing
B)   product modification
C)   industry repositioning
D)   product harvesting
E)   marketing mix modification

Question 16

Since suppliers are so close to the market, they are valuable sources of information about consumer problems, marketing opportunities, and new product possibilities.

Accepted Answer

A) True 
 B)False

Question 17

Explain what happens during the business analysis stage of new product development.

Accepted Answer

Business analysis involves a review of the sales, costs, and profit projections for a new product to find out whether they satisfy a company's objectives. If they do, the product can move to the product development stage. To estimate sales, the company might look at the sales history of similar products and conduct market surveys. It can then estimate minimum and maximum sales to assess the range of risk. After preparing the sales forecast, management can estimate the expected costs and profits for the product, including marketing, R&D, operations, accounting, and finance costs. The company then uses the sales and costs figures to analyze the new product's financial attractiveness.

Question 18

Sleek Designs Inc. is producing its first eReader. The company is striving to overcome some of the issues communicated by customers about competitive products including screen glare and product bulkiness. Sleek Designs Inc. is using a ________ approach in their new product development process.

Accepted Answer

A)   customer-centered
B)   team-based
C)   sequential
D)   supply/demand
E)   systematic

Question 19

As a result of ________, a company cannot make its product illegally similar to a competitor's already established product.

Accepted Answer

A)   anti-monopoly laws
B)   patent laws
C)   antitrust laws
D)   product warranties
E)   product liability

Question 20

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

Accepted Answer

A)   All products generally go through all five stages of the PLC.
B)   All products pass through the stages of PLC in the same order.
C)   It is generally difficult to forecast the sales level at each PLC stage.
D)   The PLC concept can be applied to styles but not to fashions and fads.
E)   Product forms have longer life cycles than product classes. C

Exam 8: New Product Development and Product Life-Cycle Strategies

Companies that combine a customer-centered approach with team-based new product development gain a big competitive edge by getting the right new products to market faster.

Correct Answer
verified

A product life cycle has five distinct stages: product development, introduction, growth, maturity, and ________.

Correct Answer
verified

The style, ease of use, and multi-blade technology of Gillette's Fusion razor system is a ________ that has favorably impacted consumer perceptions about other new products sold by the company.

Correct Answer
verified

Colonial furniture has been in existence since the 1600s and continues to adorn homes today. According to the product life cycle concept, it would be described as a ________.

Correct Answer
verified

The team-based new product development approach saves times and increases effectiveness because departments work closely together in ________.

Correct Answer
verified

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?

Correct Answer
verified
B

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.

Correct Answer
verified

Which of the following steps of the new product development process would most likely use an R-W-W framework?

Correct Answer
verified

A sequential product development approach is team-oriented, enabling firms to bring products to market very quickly.

Correct Answer
verified

The maturity stage of the product life cycle is characterized by a slowdown in sales growth.

Correct Answer
verified

A company launching a new product must first decide ________.

Correct Answer
verified

Which of the following statements is most likely true about the new product development process?

Correct Answer
verified

The Dairy Bar, a national soft-service ice cream retailer, buys cones from Cones & More. Cones & More is an important resource for marketplace information. They're considered a(n) ________ source of new product ideas for the Dairy Bar.

Correct Answer
verified

An abstract presentation of a product concept is likely to increase the reliability of the concept test.

Correct Answer
verified

Correct Answer
verified

Since suppliers are so close to the market, they are valuable sources of information about consumer problems, marketing opportunities, and new product possibilities.

Correct Answer
verified

Explain what happens during the business analysis stage of new product development.

Sleek Designs Inc. is producing its first eReader. The company is striving to overcome some of the issues communicated by customers about competitive products including screen glare and product bulkiness. Sleek Designs Inc. is using a ________ approach in their new product development process.

Correct Answer
verified

As a result of ________, a company cannot make its product illegally similar to a competitor's already established product.

Correct Answer
verified

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

Correct Answer
verified
C

Exam 8: New Product Development and Product Life-Cycle Strategies

Companies that combine a customer-centered approach with team-based new product development gain a big competitive edge by getting the right new products to market faster.

Correct AnswerverifiedShow Answer

A product life cycle has five distinct stages: product development, introduction, growth, maturity, and ________.

Correct AnswerverifiedShow Answer

The style, ease of use, and multi-blade technology of Gillette's Fusion razor system is a ________ that has favorably impacted consumer perceptions about other new products sold by the company.

Correct AnswerverifiedShow Answer

Colonial furniture has been in existence since the 1600s and continues to adorn homes today. According to the product life cycle concept, it would be described as a ________.

Correct AnswerverifiedShow Answer

The team-based new product development approach saves times and increases effectiveness because departments work closely together in ________.

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedB

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.

Correct AnswerverifiedShow Answer

Which of the following steps of the new product development process would most likely use an R-W-W framework?

Correct AnswerverifiedShow Answer

A sequential product development approach is team-oriented, enabling firms to bring products to market very quickly.

Correct AnswerverifiedShow Answer

The maturity stage of the product life cycle is characterized by a slowdown in sales growth.

Correct AnswerverifiedShow Answer

A company launching a new product must first decide ________.

Correct AnswerverifiedShow Answer

Which of the following statements is most likely true about the new product development process?

Correct AnswerverifiedShow Answer

The Dairy Bar, a national soft-service ice cream retailer, buys cones from Cones & More. Cones & More is an important resource for marketplace information. They're considered a(n) ________ source of new product ideas for the Dairy Bar.

Correct AnswerverifiedShow Answer

An abstract presentation of a product concept is likely to increase the reliability of the concept test.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Since suppliers are so close to the market, they are valuable sources of information about consumer problems, marketing opportunities, and new product possibilities.

Correct AnswerverifiedShow Answer

Explain what happens during the business analysis stage of new product development.

Sleek Designs Inc. is producing its first eReader. The company is striving to overcome some of the issues communicated by customers about competitive products including screen glare and product bulkiness. Sleek Designs Inc. is using a ________ approach in their new product development process.

Correct AnswerverifiedShow Answer

As a result of ________, a company cannot make its product illegally similar to a competitor's already established product.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedC

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B

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C