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Exam 9: Developing New Products and Managing the Product Life Cycle

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Question 1

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Which of the following involves costs that most likely occur during the commercialization stage of new product development?

A) building or renting a manufacturing facility
B) paying target customers for product feedback
C) determining the product's planned distribution
D) developing a prototype of the product
E) identifying target markets

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Question 2

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Briefly describe the steps in the new product development process.

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New product development starts with idea...

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Question 3

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Refer to the scenario below to answer the following question(s) . Most people laughed when Evelyn Ringler explained her product idea: a solar-powered vacuum cleaner. But the concept was practical and the technology used in the vacuum was the same as that used in many electronic toys. After setting up a demonstration booth in a mall in a Chicago suburb, Evelyn felt more assured than ever that her idea would be a hit. Consumers seemed receptive and offered helpful pieces of advice, such as how much they would pay for the vacuum, what colors they would prefer, and why they would not buy the vacuum. The vacuum itself was shaped like a small saucer, with a filter bag on top and sensory nodes along the edges. After being charged in the sunlight, the vacuum could run for 7 hours, covering a floor area of 600 square feet. As the apparatus lightly bumped into table legs, chairs, and so on, the sensory nodes allowed the vacuum to move around the objects in various directions. This is the same type of technology used in the manufacture of children's racecars and walking dolls. Evelyn knew that the solar-powered vacuum would be especially helpful to both elderly consumers, who may have a more difficult time with vacuuming, and on-the-go consumers who lead busy lives. The price would be above average but would likely be reduced after Evelyn recouped some of her costs. After a 500-unit production run and a substantial financial investment, Evelyn set up a multiple-city test market, in a Chicago mall and in an appliance store in New Jersey and several other retail stores in Florida. "It's such a novel idea," Evelyn added. "People will notice it, even if they don't buy it right away." -Evelyn's ________ is the practical use of solar power in a vacuum cleaner that is designed to effortlessly vacuum clean the floors of on-the-go and elderly consumers.

Which stage in the product life cycle is characterized by rapid market acceptance and increasing profits?

According to the PLC, the ________ stage is reached when sales plunge to zero, or when they drop to a low level where they continue for many years.

For concept test, companies will frequently present customers with ________ of the concept for a reliable concept test.

Some products that have entered the decline stage have been cycled back to the growth stage through ________.

Which of the following is a significant challenge presented by the product life cycle?

Which figures does the company use to analyze the new product's financial attractiveness?

The more formal "business attire" look of corporate dress of the 1980s and 1990s gave way to the "business casual" look of the 2000s and 2010s. This is an example of a ________.

Sales of products decline because of technological advances, shifts in consumer tastes, and increased competition.

Sequential product development has the advantage of not only being a team-oriented approach, but also of being faster in bringing products to market.

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

What factors are assessed in test marketing?

Using the PLC concept to develop marketing strategy can be problematic because strategy is both a cause and a result of the product's life cycle.

Which of the following is the most likely circumstance for a company to decide to do little or no test marketing?

Neutron Inc. is conducting a business analysis to determine which of the many newly developed apps should be released. To estimate sales, the company must ________.

New product development starts with ________.

Which of the following best characterizes the decline stage of product development?

________ is a new product development approach in which one company department works to complete its stage of the process before passing the new product along to the next department and stage.