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Essentials of Marketing Ch. 9 Test Review Flashcards | StudBud
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Essentials of Marketing Ch. 9 Test Review
Essentials of Marketing Ch. 9 Test Review
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Questions from the chapter on New Product Development and Product Life Cycle
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Questions
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Answers
1
As a product moves into the market maturity stage of the product life cycle,
promotion emphasizes informing consumers more than persuading them.
there is less consideration of competition in setting prices
the competitive situation moves toward monopoly
consumers tend to view products as being more similar.
2
The cost of replacing defective parts is the biggest cost of poor quality.
True
False
3
When looking for new-product ideas, which of the following would be good sources?
your salespeople
your production people
your competitors
All of the answers are correct.
4
Sales and profits generally decrease continually throughout the product life cycle.
True
False
5
Regarding product life cycles, good marketing managers know that
industry profits reach their maximum during the market growth stage.
all competitors lose money during the sales decline stage.
they are getting longer and profit margins are widening.
firms earn their biggest profits during the market introduction stage.
6
Sales growth is faster when a new product is easy to use and its advantages are easy to communicate.
False
True
7
During the market growth stage of the product life cycle, industry profits usually reach their peak and begin to decline
True
False
8
Industry profits decline during the market maturity stage, due to
declining sales and dipping promotion costs.
the sale of shoddy varieties of the original product.
mismanaged budgets and price stabilization.
increased competitive pressure to cut prices.
9
In the idea generation stage of the new-product development process,
bad ideas should be discarded as soon as possible.
firms need a continuous flow of ideas.
analysis of complaints on products is unlikely to generate any new ideas.
using competitors as a source of ideas should be avoided
10
A product that is new in any way for the company concerned is a new product.
False
True
11
According to the Federal Trade Commission (FTC), a new product is
entirely new or changed in a functionally different or substantial respect.
only new for twelve months.
something that is new in any way for the company concerned.
only new for two months.
12
The product life cycle
All of the answers are correct.
describes the stages a new-product idea goes through from beginning to end.
applies more to individual brands than to categories or types of products.
has five major stages.
13
According to the text, a new product is one that is
new in any way for the company concerned.
completely new, physically and conceptually
physically changed.
unique.
14
Total quality management applies when the firm's product is a physical good, but not when it is a service.
True
False
15
The job of product or brand manager is often created when a firm wants to
eliminate the job of the research and development dept.
do away with product "champions."
eliminate the job of sales manager.
handle many different kinds of products or brands.
16
When a large firm has several different kinds of products, product mngrs or brand mngrs may be put in charge of each one
False
True
17
Both patent and copyright law are designed to protect inventors and provide an incentive for innovation.
False
True
18
It is outside the power of the Consumer Product Safety Commission to
order repairs of unsafe products.
set safety standards for products.
search for unsafe products in consumers' homes.
order returns of unsafe products.
19
During the development step of NPD, a firm could develop a ________, an early sample or model built to test a concept
prototype
creation
idea type
concept test
20
The stage of the product life cycle characterized by informative promotion but little customer awareness of a product is
market growth.
market maturity.
sales decline.
market introduction.
21
Analyzing customer comments and other companies to find new product concepts is carried out during which step of NPD
idea evaluation
idea generation
development
screening
22
If a producer does not have a new-product development process, it ultimately means that the firm
does not want to be profitable.
can survive on old products indefinitely.
will survive on current products until going out of business.
is incapable of innovation.
23
The stage of the PLC in which competitors are most likely to introduce product improvements is the market growth stage.
False
True
24
A "rollout" happens in the ________ step of the new-product development process.
commercialization
idea evaluation
screening
idea generation
25
Relative to most other countries, the United States has very strict product liability standards.
True
False
26
Marketing managers should recognize that
product life cycles appear to be getting longer.
every segment within a market has the same product life cycle.
the PLC describes the sales and profits of ind. products, not industry "
to enter mature market you have to compete with firms for declining profits
27
Product managers or brand managers are most often found in firms with only one or a few related products.
True
False
28
NPD usually fits into the old routines of a firm, so it is not necessary for top management to support new-product devel
False
True
29
The product life-cycle concept is concerned with planning for product recycling to protect the environment.
False
True
30
Sales growth is usually faster when the product is incompatible with the past values and experience of the target market
True
False
31
The smaller the comparative advantage of a new product over those already on the market, the faster its sales will grow.
False
True
32
Brand managers manage specific products, often taking over the jobs formerly handled by an advertising manager.
False
True
33
Before widespread adoption of TQM, most firms assumed that
customers scarcely notice deficiencies in quality
the advantages of mass production were insignificant.
production defects were an inevitable part of mass production.
eliminating defects from mass production was achievable.
34
If you are seeking new-product ideas for your business, your ________ are a good source.
salespeople
customers
production people
All of the answers are correct.
35
Chris manages specific products and promo at SuperShiny Toothbrush Company. Her job responsibility sounds like that of a
channel manager.
project coordinator.
brand manager.
marketing research manager.
36
Discontinuous innovations require change in behavior to a much greater extent, as comp'd to dynamically cont. innovation
True
False
37
Which statement about products in the sales decline stage of the product life cycle is true?
Customers will abandon the product immediately if an alt. is available.
Phasing out a prod. at this time is easy, and this will cut future losses
might be more appropriate to phase out this product gradually when still $
Brand managers should phase out this product as quickly as possible.
38
In the context of the legal obligation of sellers to pay damages to individuals, product liability settlements
may exceed a company's insurance coverage but not its total assets.
are always too small to make a difference to the company's total assets.
may exceed not only a company insurance coverage but also its total assets.
never exceed a company's insurance coverage or its total assets.
39
The stage of the NPD process in which marketers evaluate the firm's strengths, weaknesses, and objectives is
idea generation.
idea evaluation.
development.
screening.
40
At which stage of the product life cycle are DVD players today?
market introduction
market maturity
sales decline
market growth
41
It is still possible for a firm to earn a profit if it operates in the sales decline stage of the product life cycle.
False
True
42
The first step in new-product development is evaluating ideas.
True
False
43
The product life cycle is divided into four major stages. These are
market introduction, profit growth, market maturity, and profit decline.
market introduction, market growth, market maturity, and sales decline.
concept introduction, market decline, market maturity, and sales decline.
ideation, market growth, market maturity, and investment decline.
44
The length of each stage in the product life cycle is set.
False
True
45
A mngr needn't worry about making ROI from $ spent on a quality program as long as it's recognized that quality is high
True
False
46
Prod. liability means the legal obligation to pay damages to those who are injured by defective or unsafe products.
True
False
