Which of the following
Which statement is true about the market introduction stage of the product life cycle?
A) In this stage, there is a need for informative promotion.
B) Customers actively seek out the new product in this stage.
C) Competition is greatest during this stage.
D) In this stage, profits are at their highest.
E) It is during this stage that sales decline and then rise.
A) In this stage, there is a need for informative promotion.
Dalina wants to buy an electric car, but the one she wants is on backorder because the demand is great. She will have to wait a year to get it. This product is on the ________ stage of the product life cycle.
market growth
Which statement is true of patents?
A) They give firms a short-term monopoly on their new technology.
B) They apply only to technology in new industries.
C) They are indefinite, protecting the new technology for as long as the firm wishes.
D) They protect the rights of a producer of creative work.
E) They are almost impossible to enforce, leading to piracy of new technolog
A) They give firms a short-term monopoly on their new technology.
Katy works for a company that makes fans, space heaters, and air purifiers. When the competition comes out with a new air purifier that is supposed to clean air twice as fast with half the energy usage, Katy buys one of the new purifiers so that her research and design team can disassemble it and attempt to build their own highly efficient version. This is an example of
reverse engineering.
McDonald’s has a new pulled pork sandwich and it is releasing it in selected cities before going to the full market. This rollout strategy occurs in the ________Blank stage of new-product development.
Commercialization
Which statement regarding the market growth stage of the product life cycle is false?
A) Innovators still earn profits, but this stage is less profitable for them than the previous stage.
B) The sales of the total industry rise fairly rapidly during this stage as more and more customers buy.
C) Many competitors enter the market during this stage resulting in great product variety.
D) Monopolistic competition is typical of this stage.
E) Toward the end of this stage, competition and consumer price sensitivity increase
A) Innovators still earn profits, but this stage is less profitable for them than the previous stage.
The greater the ______ of a new product over those already on the market, the more rapidly its sales will grow.
comparative advantage
An industry with tough competition faces falling profits, and its sales growth is slow. Demand for individual brands has become quite elastic—as consumers see competing products as almost homogeneous. Several firms have dropped out. Which stage of the product life cycle does this indicate?
A) market growth
B) market introduction
C) product renewal
D) market maturity
E) sales decline
D) market maturity
Marlo’s company makes televisions. The Clarity, a 4K television featuring wireless capabilities, is its best-selling model, and the company plans to release a new version in a month. However, next year Marlo’s company plans to release a television featuring brand new technology that offers even better picture quality than the Clarity. This is an example of
planned obsolescence.
Which statements about organizing for new-product development is true?
A) Top-level support is not vital to the success of new-product development.
B) A company’s R&D specialists, operations, and marketing personnel should avoid working together when evaluating the feasibility of new ideas.
C) For a firm to be successful in its new-product development endeavors, it should encourage a culture that supports innovation.
D) No one should be put in charge of new-product development; it should be left to anyone who demonstrates an interest in taking the initiative.
C) For a firm to be successful in its new-product development endeavors, it should encourage a culture that supports innovation.
Which statement about innovations is true?
A) Dynamically continuous innovations do not require changes in customer behavior.
B) Discontinuous innovations require that customers adopting the innovation significantly change their behavior.
C) Discontinuous innovations entail minor variations on existing products.
D) Continuous innovations require customers to learn new behaviors.
E) Continuous innovations result in completely new product-markets and new product life cycles.
B) Discontinuous innovations require that customers adopting the innovation significantly change their behavior.
A company that offers a subscription service for dog toys and treats is struggling because people would rather pick out the toys and treats for their animals themselves. Although it has some very loyal subscribers, the company decided to gradually cut back on its services and offer its subscribers a lower subscription rate. Eventually, the company plans to stop offering the service if sales continue to drop. This is known as a ________ strategy
phase-out
Which term refers to the legal obligation of sellers to pay damages to individuals who are injured by defective or unsafe products?
Product liability
Lorenzo works as a market researcher for a company that makes frozen foods. The company is considering releasing a new line of frozen dinners featuring flavors from around the world. The dinners have not been created yet, so Lorenzo creates an online survey to ask potential consumers questions and gauge how well the new products will meet the needs and tastes of customers. Lorenzo is engaging in
concept testing.
Product ideas that survive the screening and idea evaluation steps get further investment of time and money, including the creation of a(n) ________, which is an early sample or model built to test a concept.
Prototype
Which statement is true of a second-mover?
A) A second-mover has a weak customer focus.
B) A second-mover is always at a disadvantage when compared to a pioneer.
C) A second-mover is the first to market with a new product idea.
D) A second-mover is one that quickly follows a pioneer.
E) A second-mover is always less profitable over the long run.
D) A second-mover is one that quickly follows a pioneer.
Concept testing occurs during the _______ stage of new-product development.
Idea evaluation
What government organization is tasked with encouraging safety in product design and better quality control by setting safety standards for products and ordering repairs or return of unsafe products?
Consumer Product Safety Commission
Maytag introduced a new high gloss white finish for its refrigerators. This innovation would be classified as a ________ innovation
continuous
Product or brand managers are commonly used when a firm
A) has only one or a few related products.
B) wants to eliminate the job of the advertising manager.
C) has several different kinds of products or brands.
D) wants to dismiss the use of cross-functional teams.
E) wants one person to have authority over all the functional areas that affect the profitability of a particular product.
C) has several different kinds of products or brands.
Which statement about fashion-related products is false?
A) Fashion products are often the hottest selling products in the short term.
B) Fashion products are usually marked by innovation and creativity.
C) Fashion products are often seasonal.
D) Fashion products require marketing managers to make frequent product changes.
E) Fashion products have long life cycles.
E) Fashion products have long life cycles.
During the screening stage of new-product development, ________ is used to make rough estimates of profit and development cost to determine if a product is viable.
ROI
An appliance manufacturer has created a new clothes dryer that uses light to dry clothes. The company has created a prototype and is testing a marketing mix. The product manager has developed an estimate of the return on investment. Considering these activities, the product is most likely in the ______ stage of the new-product development process.
development
Allain works as a server for a restaurant that gives him a certain amount of autonomy. For example, if customers complain about their meal, Allain is allowed to provide them with a free dessert or otherwise compensate them as he deems appropriate. He does not need to check with management before he makes his decision. In this case, the restaurant Albert works for is promoting better service quality through
empowerment.
Using total quality management to improve the implementation of a marketing plan is likely to involve
A) an emphasis on physical goods over service products.
B) the training and empowerment of employees to identify and solve customer problems.
C) a flexible quality program with no specifications on exactly what tasks have to be done and by whom.
D) a lack of participation from the top-level management.
E) the assumption that defects are inevitable and acceptable.
B) the training and empowerment of employees to identify and solve customer problems.