Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
86) Because a market is saturated, firms may attempt to enter new geographical markets that may
be less saturated. For example, pharmaceutical companies are realizing that they need to turn to
________ for continued growth in the coming years.
A) BRIC countries
B) third-world countries
C) communist countries
D) Germany
E) France
87) The Apple iPod changed the way people listen to music but it also created an entirely new
industry devoted to accessories such as cases, ear buds, docking stations, and speakers. The
Apple iPod is considered a
A) pioneer product.
B) introductory product.
C) mature product.
D) diffused product.
E) early adopted product.
88) Beverly is assessing the results of a new product launch of a series of e-books for her
bookstore. When evaluating the results, Beverly will likely consider all of the following except
A) why it took her so long to consider the new product line.
B) if the e-books are generating the expected level of profit.
C) if the e-books are generating the expected level of sales.
D) if her customers are interested in the new books.
E) if the e-books function as expected.
89) All of the following are included in the four product life cycle stages except
A) introduction.
B) stagnation.
C) maturity.
D) growth.
E) decline.
90) Microsoft's Windows operating system continues to dominate the market, even though it has
been around for over 20 years. Windows will likely remain in the maturity stage of the product
life cycle
A) indefinitely.
B) unless Microsoft repositions it as a growth product.
C) until a superior product comes along to replace it.
D) unless Microsoft repositions it as an introductory stage product.
E) as long as the company doesn't change it.
91) During the ________ stage of the product life cycle, sales are low and profits are small or
negative.
A) introduction
B) leveling
C) maturity
D) growth
E) decline
92) When Dr. Putt invented his Eye-Over-the-Ball (EOB) golf putting device, he knew during
the introductory stage
A) sales would rise quickly, profits would jump, and even laggards would buy his product.
B) sales would level off, profits would decline, and mature golfers would be attracted to his
product.
C) sales would slow down, profits would peak, and early adopters of golf equipment would be
his major customers.
D) sales would be low and profits nonexistent, but he would attract golf equipment innovators.
E) sales would be low, profits would be high, and all potential golfers would jump at the
opportunity to buy his product.
93) Which of the following statements about the growth stage of the product life cycle is true?
A) It is characterized by initial losses to the firm due to its high start-up costs and low levels of
sales revenue.
B) Marketing costs increase as firms vigorously defend their market share against competitors.
C) Firms will only start to see a rise in profits toward the end of the stage as the product matures.
D) Firms attempt to reach new consumers by studying their preferences, which enable them to
segment the market more precisely.
E) Firms may position themselves for a niche segment of diehard consumers.
94) When Toyota introduced hybrid cars, there were waiting lists to buy them. Then Honda and a
few other manufacturers entered the market, shifting the product life cycle for hybrid cars into
the ________ stage of the product life cycle.
A) introduction
B) leveling
C) maturity
D) growth
E) decline
95) Some products may stay comfortably in the maturity phase of the product life cycle until a
new product emerges to replace them. An example of such a mature product is
A) e-books.
B) dishwashers.
C) the VCR.
D) smartphones.
E) vinyl records.
96) The growth phase of the product life cycle is always dynamic. All of the following occur
during this phase except
A) profits increase as sales increase.
B) profits increase as economies of scale are attained.
C) some new competitors may enter the market with similar products.
D) some competitors will exit in an "industry shakeout."
E) price competition with protracted price wars erodes profits.
97) All of the following are characteristics of products in the maturity stage of the product life
cycle except
A) laggards are a major focus of marketing efforts.
B) price competition is intense.
C) marketing costs increase as firms defend their market share.
D) the market may become saturated because nearly all potential customers have adopted the
product.
E) to increase the customer base, firms consider entry into new markets and new market
segments.
98) During the ________ stage of the product life cycle, sales peak and profits begin to decline
as competition becomes intense.
A) introduction
B) leveling
C) maturity
D) growth
E) decline
99) By the time BMW and Mercedes-Benz entered the mini-SUV market, there were many
competitors, sales had peaked, and profits were declining. These firms entered the market during
the ________ stage of the product life cycle.
A) introduction
B) leveling
C) maturity
D) growth
E) decline
48
100) During the ________ stage of the product life cycle, firms either position themselves for a
niche segment of diehard consumers or they completely exit the market.
A) introduction
B) leveling
C) maturity
D) growth
E) decline
101) The CEO of David's firm just came back from a business seminar. He called David into his
office and stated, "I just found out about the product life cycle curve in a strategy seminar. This
is a great tool. I want you to drop whatever you're doing and inventory all of our products to
determine exactly where they are in the product life cycle." David needs to think fast for a good
answer because he knows that
A) the product life cycle is not a useful concept.
B) it is often impossible to identify with precision where a product is in the product life cycle.
C) the product life cycle is not helpful in companies like his that pay attention to diffusion of
innovation.
D) the idea has been discredited by recent research.
E) the product life cycle works only for certain types of firms.
102) The shape of the diffusion of innovation curve is described as
A) bell-shaped.
B) positive.
C) negative.
D) variant.
E) convex.
103) Which of the following adopter categories refers to the last large group of buyers to enter a
new product market?
A) late majority
B) early majority
C) laggards
D) early adopters
E) innovators
104) During the ________ stage of the product life cycle, there are few but an increasing number
of competitors.
A) growth
B) introduction
C) maturity
D) decline
E) innovation
105) If a few of Nintendo's customers are asked to try out a new video game that has not yet
been released on the market, this is an example of
A) beta testing.
B) market testing.
C) premarket tests.
D) test marketing.
E) concept testing.
106) A product in the ________ stage faces intense competition on price.
A) introduction
B) growth
C) decline
D) development
E) maturity
107) Which of the following is true of profits in the maturity stage of the product life cycle?
A) They are negative.
B) They are low.
C) They peak or are declining.
D) They are rapidly rising.
E) They are slowing rising.
108) The Eiger Labs MPMan was the first mass-produced MP3 player sold in the United States.
Eiger Labs was a(n) ________ in the MP3 player market.
A) blockbuster
B) early adopter
C) pioneer
D) market tester
E) concept tester
109) In one test before product launch, customers try a sample product and are then surveyed to
understand whether or not they would buy/use the product again. This is known as
A) premarket testing.
B) market testing.
C) alpha testing.
D) concept testing.
E) prelaunch testing.
110) Which of the following statements best explains the product life cycle?
A) the process by which the use of an innovation spreads throughout a market group over time
and over various categories of adopters
B) the length of time a product exists in the marketplace before the market becomes saturated
C) the stages that products move through as they enter, get established in, and ultimately leave
the marketplace
D) the time in which firms hire an outside firm to help generate ideas and develop new products
and services
E) the process in which a product is analyzed and improved so that it does not infringe on the
competitor's patents
111) On the basis of the research it has gathered on consumer perceptions, the tests it has
conducted, and competitive considerations, the XYZ firm confirms its target market (or markets)
and decides how its product will be positioned. Then the firm finalizes the remaining marketing
mix variables for the new product, including the marketing budget for the first year. This process
illustrates
A) the product launch.
B) the company's evaluation of results.
C) premarket demonstrations.
D) alpha testing.
E) beta testing.
112) The product life cycle is theoretically ________ with regard to sales and profits.
A) U shaped
B) Y shaped
C) bell shaped
D) circular
E) flat lined
113) In the United States, most consumer-packaged goods found in grocery and discount stores
are already in the ________ stage of the product life cycle.
A) growth
B) pioneer
C) introduction
D) decline
E) maturity
114) During the introduction stage of a product's life cycle, typical consumers are
A) early adopters.
B) innovators.
C) pioneers.
D) early majority.
E) laggards.
