Which of the following is NOT a challenge presented by the product life cycle that a firm must face?

1) Which of the following is NOT a challenge presented by the product life cycle that a firm must face?

A) All products eventually decline.

B) Changing tastes, technologies, and competition affect the marketing of the product as it passes through life-cycle stages.

C) A firm must be good at developing new products to replace aging ones.

D) A firm must be good at adapting its marketing strategies.

E) It is difficult to plot the stages as a product goes through them.

Answer:  E

Diff: 2        Page Ref: 259

Skill:  Concept

Objective:  9-1

2) What are the two ways that a company can obtain new products?

A) line extension and brand management

B) internal development and brand management

C) new-product development and acquisition

D) service development and product extension

E) market mix modification and research and development

Answer:  C

Diff: 2        Page Ref: 260

Skill:  Concept

Objective:  9-1

3) Product improvements, product modifications, and original products can all be classified as ________.

A) pioneer products

B) new products

C) product strategies

D) product extensions

E) test products

Answer:  B

Diff: 1        Page Ref: 260

Skill:  Concept

Objective:  9-1

4) Which of the following is NOT a potential reason for a new product to fail?

A) an underestimated market size

B) a poorly designed product

C) an incorrectly positioned product

D) higher than anticipated costs of product development

E) ineffective advertising

Answer:  A

Diff: 2        Page Ref: 260

Skill:  Concept

Objective:  9-1

5) Your firm added three new products earlier this year to increase variety for customers. Two of them failed to reach even minimal sales. Which of the following is LEAST likely to have been the cause of their failure?

A) The products were priced too high.

B) The products were advertised incorrectly.

C) Competitors fought back harder than expected.

D) Research was too extensive.

E) The product launch was ill-timed.

Answer:  D

Diff: 2        Page Ref: 260

Skill:  Concept

Objective:  9-1

6) New-product development starts with ________.

A) idea generation

B) idea screening

C) concept development

D) concept testing

E) test marketing

Answer:  A

Diff: 1        Page Ref: 261

Skill:  Concept

Objective:  9-2

7) Executives, manufacturing employees, and salespeople are all examples of ________.

A) external sources for new-product ideas

B) internal sources for new-product ideas

C) core members of innovation management systems

D) research and development team members

E) test marketers

Answer:  B

Diff: 2        Page Ref: 262

Skill:  Concept

Objective:  9-2

8) Your company decides to use only internal sources for developing new-product ideas. Which of the following would NOT be consulted?

A) executives and professionals

B) company records and data

C) intrapreneurial programs

D) suppliers

E) salespeople

Answer:  D

Diff: 2        Page Ref: 262

Skill:  Concept

Objective:  9-2

9) Which of the following is NOT a recommended method for companies to tap into their customers as sources for new-product ideas?

A) analyzing customer complaints and questions

B) relying heavily on customers to know what types of technical products they need

C) working alongside customers to get ideas and suggestions

D) turning customers into cocreators

E) putting customer-created products on the market

Answer:  B

Diff: 3        Page Ref: 262

Skill:  Concept

Objective:  9-2

10) Your firm asks you to consult external sources for new-product ideas. All of the following are common external sources EXCEPT ________.

A) customers

B) suppliers

C) competitors

D) trade shows and magazines

E) the firm's executives

Answer:  E

Diff: 1        Page Ref: 262

Skill:  Concept

Objective:  9-2

11) Which of the following is the practice of inviting broad communities of customers, employees, independent researchers, and members of the public into the new-product innovation process?

A) brainstorming

B) idea screening

C) crowdsourcing

D) outsourcing

E) concept testing

Answer:  C

Diff: 1        Page Ref: 263

Skill:  Concept

Objective:  9-2

12) The purpose of idea generation is to create a ________ number of ideas. The purpose of succeeding stages is to ________ that number.

A) small number; reduce

B) small number; increase

C) large number; increase

D) large number; reduce

E) limited number; sustain

Answer:  D

Diff: 2        Page Ref: 264

Skill:  Concept

Objective:  9-2

13) The owners of GrayBerry Gifts have just brainstormed a large number of ideas for adding new products and services after visiting several buying fairs. The owners will begin the first idea-reducing stage, called ________, to arrive at a realistic number to adopt.

A) business analysis

B) idea generation

C) concept testing

D) idea screening

E) concept development

Answer:  D

Diff: 2        Page Ref: 264

Skill:  Concept

Objective:  9-2

14) Which of the following is most likely to be included in an executive's write up of a new-product idea to be presented to a new-product committee?

A) the proposed customer value proposition

B) the product image

C) the marketing strategy

D) the business analysis

E) the planned market rollout

Answer:  A

Diff: 3        Page Ref: 264

Skill:  Concept

Objective:  9-2

15) A detailed version of a new idea stated in meaningful customer terms is called a ________.

A) product idea

B) product concept

C) product image

D) product proposal

E) product movement

Answer:  B

Diff: 2        Page Ref: 264

Skill:  Concept

Objective:  9-2