Question 1

Which is a limitation of the PLC concept?

Accepted Answer

A)   It does not tell managers the length of a product's life cycle or its duration in any stage.
B)   It can only dictate marketing strategy with forecasts of events depending on life cycle length.
C)   It only tells managers the length of a product's life cycle based on past and currently running cycles.
D)   It cannot help marketers forecast future events and suggest appropriate strategies.E) A) and D)
F) C) and D)

Question 2

How does a multinational corporation meet the needs of the global market?

Accepted Answer

Answers will vary.Increasing globalizati...

Question 3

In late 2014,Apple introduced the iPhone 6,which featured a larger screen with 38% more pixels than the iPhone 5S and an upgraded camera that could record videos in slow motion.These changes indicate that Apple was offering a new product line.

Accepted Answer

A) True 
 B)False

Question 4

Which statement is true of the maturity stage of the product life cycle (PLC) ?

Accepted Answer

A)   The beginning of this stage is signaled by increased sales.
B)   Niche marketers that target the underserved segments of a market emerge.
C)   It is the shortest stage of the PLC.
D)   Product design changes tend to become functional rather than stylistic.E) B) and C)
F) A) and B)

Question 5

Which of the following products has the highest trialability?

Accepted Answer

A)   An airline
B)   A condominium
C)   A toothpaste
D)   An investment appE) A) and D)
F) A) and C)

Question 6

Which statement is true of opinion leaders?

Accepted Answer

A)   They most likely belong to the late majority category of adopters.
B)   They speed up the diffusion process through word-of-mouth communication.
C)   They are distinguished by demographics.
D)   They have the longest adoption time and the lowest socioeconomic status.E) A) and B)
F) None of the above

Question 7

Which of the following is characteristic of both early adopters and the early majority?

Accepted Answer

A)   Both groups tend to be opinion leaders.
B)   Both rely on group norms and values.
C)   Both desire to earn the respect of others.
D)   Both are influenced by social media websites and digital promotions.E) A) and B)
F) A) and C)

Question 8

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

Accepted Answer

A)   Costs decrease dramatically once a product idea enters the development stage.
B)   The development stage involves evaluating a new-product idea before creating a prototype.
C)   Simultaneous product development increases the time spent in the development process.
D)   The development stage involves examining the feasibility of manufacturing a product at an acceptable cost.E) B) and C)
F) A) and D)

Question 9

How can the Internet be used to help implement simultaneous product development?

Accepted Answer

Answers will vary.The Internet is a usef...

Question 10

A product category includes all brands that satisfy a particular type of need.

Accepted Answer

A) True 
 B)False

Question 11

Fournotts Corp.manufactures and sells accessories for cell phones.To boost its sales,the research and development team decides to use product modification as an approach to new product development.In this scenario,the research and development team will most likely:

Accepted Answer

A)   eliminate products that are inconsistent with Fournotts's business mission.
B)   develop products by applying new technology.
C)   make a slight change in the design or function of the existing products.
D)   add new products to supplement Fournotts's established product line.E) A) and B)
F) A) and C)

Question 12

A new range of organic confectionary was introduced by Bounty Foods.The company is forced to give its dealer high margins and also needs to invest heavily in advertising.Their production costs are also high.In which PLC stage is the company most likely to be?

Accepted Answer

A)   Introductory stage
B)   Growth stage
C)   Maturity stage
D)   Decline stageE) A) and C)
F) A) and B)

Question 13

In test marketing,the greatest danger is in choosing a test-site city that ______.

Accepted Answer

A)   does not reflect market conditions in the new product's projected market area
B)   is unique in being representative of the entire city,although it is unlike neighboring cities
C)   does not respond quickly to changing trends and is highly entrenched in its cultural ways
D)   has a racial mix and thus has more diversity than other cities in the projected market areaE) A) and B)
F) All of the above

Question 14

The PLC for a brand that was the first and last competitor in a product form market is ______.

Accepted Answer

A)   said to be zero or nil
B)   longer than that of the product form
C)   shorter than that of the product form
D)   as long as that of the product formE) B) and D)
F) None of the above

Question 15

Explain the difference between absolute and relative product failure.Discuss the reasons why a large proportion of new product introductions fail.

Accepted Answer

Answers will vary.Despite the amount of ...

Question 16

Atwood Furnishers is experiencing a period when their sales are increasing at a slower rate.The company realizes that new users cannot be added indefinitely and that,sooner or later,its market will approach saturation.Which stage is the company now entering?

Accepted Answer

A)   End of the decline stage
B)   End of the introductory stage
C)   Beginning of the growth stage
D)   Beginning of the maturity stageE) B) and C)
F) A) and C)

Question 17

Which of the following is a characteristic of products produced by multinational corporations?

Accepted Answer

A)   Products are developed for global distribution and then tweaked to meet unique market requirements whenever possible.
B)   A firm that starts with a local strategy is better able to develop global products.
C)   Products are inadequately distributed in local markets.
D)   Test marketing is not required for products developed by multinational firms.E) All of the above
F) A) and C)

Question 18

When predicting or explaining the rate of acceptance and diffusion of a new product,the degree to which it can be sampled on a limited basis is its ______.

Accepted Answer

A)   compatibility
B)   trialability
C)   observability
D)   complexityE) B) and D)
F) None of the above

Question 19

While word-of-mouth marketing is important to Millennials,actually getting them to discuss products concretely can be difficult.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following provides an accurate contrast of product life cycle lengths?

Accepted Answer

A)   The PLC for a product form is usually longer than the PLC for any one brand.
B)   The PLC for a product category is usually shorter than the PLC for any one product form.
C)   The PLC for a product form is usually equal to the PLC for the corresponding product category.
D)   The PLC for a product category is usually shorter than the PLC for any one brand.E) B) and D)
F) None of the above

Exam 11: Developing and Managing Products

Which of the following provides an accurate contrast of product life cycle lengths?

Correct AnswerverifiedShow Answer

Which statement is true of opinion leaders?

Correct AnswerverifiedShow Answer

Which of the following is a characteristic of products produced by multinational corporations?

Correct AnswerverifiedShow Answer

In test marketing,the greatest danger is in choosing a test-site city that ______.

Correct AnswerverifiedShow Answer

Atwood Furnishers is experiencing a period when their sales are increasing at a slower rate.The company realizes that new users cannot be added indefinitely and that,sooner or later,its market will approach saturation.Which stage is the company now entering?

Correct AnswerverifiedShow Answer

The PLC for a brand that was the first and last competitor in a product form market is ______.

Correct AnswerverifiedShow Answer

Fournotts Corp.manufactures and sells accessories for cell phones.To boost its sales,the research and development team decides to use product modification as an approach to new product development.In this scenario,the research and development team will most likely:

Correct AnswerverifiedShow Answer

How can the Internet be used to help implement simultaneous product development?

Correct AnswerverifiedAnswers will vary.The Internet is a usef...View AnswerShow Answer

In late 2014,Apple introduced the iPhone 6,which featured a larger screen with 38% more pixels than the iPhone 5S and an upgraded camera that could record videos in slow motion.These changes indicate that Apple was offering a new product line.

Correct AnswerverifiedShow Answer

While word-of-mouth marketing is important to Millennials,actually getting them to discuss products concretely can be difficult.

Correct AnswerverifiedShow Answer

Which is a limitation of the PLC concept?

Correct AnswerverifiedShow Answer

Explain the difference between absolute and relative product failure.Discuss the reasons why a large proportion of new product introductions fail.

Correct AnswerverifiedAnswers will vary.Despite the amount of ...View AnswerShow Answer

Which of the following products has the highest trialability?

Correct AnswerverifiedShow Answer

A product category includes all brands that satisfy a particular type of need.

Correct AnswerverifiedShow Answer

Which of the following is characteristic of both early adopters and the early majority?

Correct AnswerverifiedShow Answer

A new range of organic confectionary was introduced by Bounty Foods.The company is forced to give its dealer high margins and also needs to invest heavily in advertising.Their production costs are also high.In which PLC stage is the company most likely to be?

Correct AnswerverifiedShow Answer

Which statement is true of the maturity stage of the product life cycle (PLC) ?

Correct AnswerverifiedShow Answer

How does a multinational corporation meet the needs of the global market?

Correct AnswerverifiedAnswers will vary.Increasing globalizati...View AnswerShow Answer

When predicting or explaining the rate of acceptance and diffusion of a new product,the degree to which it can be sampled on a limited basis is its ______.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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Answers will vary.The Internet is a usef...
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Answers will vary.Despite the amount of ...
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Answers will vary.Increasing globalizati...
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