Question 1

A product idea may be in different life-cycle stages in different markets.

Accepted Answer

A) True 
 B)False

Question 2

All of the following products are in the market maturity stage of the product life cycle except:

Accepted Answer

A)   laundry detergents.
B)   breakfast cereals.
C)   ultra high-definition TVs.
D)   carbonated soft drinks.
E)   gasoline-powered cars.F) C) and D)
G) C) and E)

Question 3

In the _____ stage of the product life cycle, organizations focus on building primary demand.

Accepted Answer

A)   market decline
B)   market maturity
C)   sales decline
D)   market growth
E)   market introductionF) B) and E)
G) A) and B)

Question 4

Which of the following gives the correct order of the steps in the new-product development process?

Accepted Answer

A)   Screening, idea generation, idea evaluation, development, commercialization
B)   Idea generation, screening, idea evaluation, development, commercialization
C)   Idea generation, idea evaluation, development, screening, commercialization
D)   Development, idea generation, screening, commercialization, idea evaluation
E)   Commercialization, idea generation, idea evaluation, screening, developmentF) C) and D)
G) D) and E)

Question 5

Regarding what a "new product" is, your text says:

Accepted Answer

A)   a product should be considered "new" if it is new in any way for the company concerned.
B)   that the FTC would not call an existing product new, even if it were changed in a functionally significant way.
C)   there is no legal limit on how long a product can be called "new."
D)   a new product must be totally different before it can be called a "new product."
E)   All of these alternatives are correct.F) C) and D)
G) B) and E)

Question 6

Product life cycles describe industry sales and profits within a particular product-market, and not the sales and profits of individual brands.

Accepted Answer

A) True 
 B)False

Question 7

Industry profits are largest in which of the following product life cycle stages?

Accepted Answer

A)   Market introduction
B)   Market growth
C)   Market maturity
D)   Sales decline
E)   None of these is a good answerF) C) and D)
G) C) and E)

Question 8

The product life cycle:

Accepted Answer

A)   describes the stages a new product idea goes through from beginning to end.
B)   has five major stages.
C)   applies more to individual brands than to categories or types of products.
D)   shows that sales and profits tend to move together over time.
E)   All of these alternatives are correct.F) A) and D)
G) B) and E)

Question 9

The probable length of the product life cycle has little effect on strategy planning.

Accepted Answer

A) True 
 B)False

Question 10

Sales growth is usually faster when the product is incompatible with the past values and experience of the target market.

Accepted Answer

A) True 
 B)False

Question 11

Firms should try to develop marketing mixes that make the most of the market growth stage of the product life cycle-when profits are highest.

Accepted Answer

A) True 
 B)False

Question 12

In the market growth stage of the product life cycle:

Accepted Answer

A)   competing products become almost the same in the minds of potential consumers.
B)   distribution moves from intensive to selective.
C)   many competitors drop out of the market.
D)   total industry sales increase very slowly.
E)   total industry profits reach their peak and begin to decline.F) B) and D)
G) C) and D)

Question 13

The product life cycle concept is concerned with planning for product recycling to protect the environment.

Accepted Answer

A) True 
 B)False

Question 14

When a firm's product has won loyal customers, it can be successful for a long time-even in a mature or declining market.

Accepted Answer

A) True 
 B)False

Question 15

When building quality into services, managers should:

Accepted Answer

A)   not worry about training because people will learn by experience.
B)   spend all of their time watching employees to make sure that they do things right every time.
C)   require employees to check with managers before attempting to correct any problem.
D)   empower employees by giving them the authority to satisfy customers' needs without always checking with a supervisor.
E)   None of these alternatives is correct.F) D) and E)
G) A) and E)

Question 16

During the introduction stage of the product life cycle,

Accepted Answer

A)   "me-too" products quickly take market share away from the innovator.
B)   most products achieve intensive distribution.
C)   industry profits are at their highest.
D)   promotion is likely to be needed to build primary demand.
E)   None of these alternatives is true.F) C) and E)
G) C) and D)

Question 17

Because firms must be developing new products all the time, which of the following statements is true?

Accepted Answer

A)   Competitors are likely to rapidly introduce product improvements in the market growth stage.
B)   The developed economies experience technological advances quicker than the less-developed economies.
C)   Although the life of different products varies, product life cycles are getting shorter.
D)   One new invention may make possible many new products to replace old ones.
E)   All of these statements are true.F) A) and E)
G) A) and B)

Question 18

In the market introduction stage of the product life cycle

Accepted Answer

A)   sales are the highest.
B)   most companies experience losses.
C)   industry profits rise.
D)   industry sales level off.
E)   total industry profit is highest.F) B) and D)
G) None of the above

Exam 9: Product Management and New-Product Development

Which of the following gives the correct order of the steps in the new-product development process?

Correct Answer
verified

In the market growth stage of the product life cycle:

Correct Answer
verified

In the _____ stage of the product life cycle, organizations focus on building primary demand.

Correct Answer
verified

The product life cycle:

Correct Answer
verified

In the market introduction stage of the product life cycle

Correct Answer
verified

When a firm's product has won loyal customers, it can be successful for a long time-even in a mature or declining market.

Correct Answer
verified

Sales growth is usually faster when the product is incompatible with the past values and experience of the target market.

Correct Answer
verified

When building quality into services, managers should:

Correct Answer
verified

The product life cycle concept is concerned with planning for product recycling to protect the environment.

Correct Answer
verified

Industry profits are largest in which of the following product life cycle stages?

Correct Answer
verified

Because firms must be developing new products all the time, which of the following statements is true?

Correct Answer
verified

All of the following products are in the market maturity stage of the product life cycle except:

Correct Answer
verified

Firms should try to develop marketing mixes that make the most of the market growth stage of the product life cycle-when profits are highest.

Correct Answer
verified

Regarding what a "new product" is, your text says:

Correct Answer
verified

A product idea may be in different life-cycle stages in different markets.

Correct Answer
verified

During the introduction stage of the product life cycle,

Correct Answer
verified

Product life cycles describe industry sales and profits within a particular product-market, and not the sales and profits of individual brands.

Correct Answer
verified

The probable length of the product life cycle has little effect on strategy planning.

Correct Answer
verified

Exam 9: Product Management and New-Product Development

Which of the following gives the correct order of the steps in the new-product development process?

Correct AnswerverifiedShow Answer

In the market growth stage of the product life cycle:

Correct AnswerverifiedShow Answer

In the _____ stage of the product life cycle, organizations focus on building primary demand.

Correct AnswerverifiedShow Answer

The product life cycle:

Correct AnswerverifiedShow Answer

In the market introduction stage of the product life cycle

Correct AnswerverifiedShow Answer

When a firm's product has won loyal customers, it can be successful for a long time-even in a mature or declining market.

Correct AnswerverifiedShow Answer

Sales growth is usually faster when the product is incompatible with the past values and experience of the target market.

Correct AnswerverifiedShow Answer

When building quality into services, managers should:

Correct AnswerverifiedShow Answer

The product life cycle concept is concerned with planning for product recycling to protect the environment.

Correct AnswerverifiedShow Answer

Industry profits are largest in which of the following product life cycle stages?

Correct AnswerverifiedShow Answer

Because firms must be developing new products all the time, which of the following statements is true?

Correct AnswerverifiedShow Answer

All of the following products are in the market maturity stage of the product life cycle except:

Correct AnswerverifiedShow Answer

Firms should try to develop marketing mixes that make the most of the market growth stage of the product life cycle-when profits are highest.

Correct AnswerverifiedShow Answer

Regarding what a "new product" is, your text says:

Correct AnswerverifiedShow Answer

A product idea may be in different life-cycle stages in different markets.

Correct AnswerverifiedShow Answer

During the introduction stage of the product life cycle,

Correct AnswerverifiedShow Answer

Product life cycles describe industry sales and profits within a particular product-market, and not the sales and profits of individual brands.

Correct AnswerverifiedShow Answer

The probable length of the product life cycle has little effect on strategy planning.

Correct AnswerverifiedShow Answer

Correct Answer
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