Chapter 8 Questions Marketing

Which of the following statements is most likely true about the new product development process? 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, and suppliers are major sources of new product ideas.

Internal sources of new product ideas for a company include its ________. A. customers B. distributors C. suppliers D. employees E. competitors

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. A. marketing strategy development B. crowdsourcing C. concept development D. business analysis E. test marketing

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. A. crowdsourcing B. idea screening C. concept testing D. concept development E. business analysis

The stage in which a product concept is presented to groups of target consumers physically or symbolically is referred to as ________. A. concept testing B. concept development C. test marketing D. marketing strategy development E. crowdsourcing

The second part of a marketing strategy statement describes the ________ of a new product. A. marketing mix strategy B. profit goals C. planned price D. target market E. planned value proposition

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? A. test marketing B. idea screening C. business analysis D. marketing strategy development E. concept testing

In a sequential new product development process, which of the following is true of the product development step? A. Product development is usually followed by a business analysis of the product. B. Product development involves introducing a product into realistic market settings. C. Product development avoids testing products on actual customers due to liability concerns. D. Product development is usually followed by test marketing. E. Product development helps top management review profit projections.

If a product passes both the concept test and the product test, the next step is most likely to be ________. A. marketing strategy development B. product development C. test marketing D. business analysis E. concept development

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 ________. A. test marketing B. portfolio analysis C. commercialization D. internal marketing E. business analysis

________ is the stage where a product and its proposed marketing program are introduced into realistic market settings. A. Market strategy development B. Concept testing C. Test marketing D. Concept development E. Business analysis

Introducing a new product into the market is called ________. A. test marketing B. segmentation C. product development D. commercialization E. market penetration

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. A. intradepartmental new product development B. sequential new product development C. team-based new product development D. simulated test market E. controlled test market

Which of the following statements is most likely true about the product life cycle? A. Throughout the product introduction stage, sales are zero. B. The growth stage is the longest stage of the product life cycle. C. Profits are nonexistent in the growth stage. D. Growth is a period of rapid market acceptance and increasing profits. E. Maturity is the period when sales fall off but profits continue to rise.

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

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.)________. A. form B. fashion C. fad D. style E. drift

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? A. product development B. introduction C. growth D. maturity E. adoption

Which of the following is true of the growth stage of the product life cycle? A. New competitors avoid the market. B. Prices tend to increase significantly. C. Early adopters stop buying the product. D. Profits are nonexistent at this stage. E. Sales start climbing quickly.

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. A. introduction B. maturity C. growth D. decline E. incubation

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