49) During the decline phase of the product life cycle, ________.
A) promotion is focused on product awareness
B) companies boost customer service efforts to keep up with product
C) channel members cease to support the product
D) the product reaches its maximum distribution
E) promotion emphasizes brand advertising and comparative ads
50) During the maturity phase of the product life cycle, ________.
A) sales grow, but at a rate lower than the growth stage
B) no growth in sales occurs
C) sales are low, typically with high failure rate
D) sales grow at an increasing rate in comparison to the growth stage
E) long-run drop in sales takes place
51) In the maturity phase of the product life cycle, the targeted consumers are ________.
A) laggards
B) majority adopters
C) late adopters
D) innovators
E) early adopters
52) Which of the following characterizes the decline stage of the product life cycle?
A) New and improved models are sold at high price points.
B) Attractive price points are set to gain market share and discourage competitors.
C) Established competition makes price pressures more pronounced, forcing lower-price strategy
if product not well-differentiated.
D) Significant price pressures come from competitors and consumers.
E) Existing models or earlier generations move down in price.
53) Products that are new-to-the-world create a fundamental change in the marketplace and are
known as ________.
A) technological transformations
B) convenience goods
C) core products
D) disruptive innovations
E) enhanced products
54) New-to-the-world products are products that ________.
A) have been available before but are recycled
B) are innovative but only slightly different than previous products
C) have not been available before their introduction to the market
D) are not disruptive to the marketplace
E) make existing products more desirable
55) When new-to-the-world products are better, faster versions of existing products that target,
for the most part, existing customers, then these products are described as ________.
A) specialized goods
B) core products
C) convenience goods
D) sustaining innovations
E) disruptive innovations
56) Once a product has been developed and is on the market, the company can extend the
product by ________.
A) creating additions to existing product lines
B) creating new names for the same products
C) developing persuasive advertisements
D) upgrading or modifying existing products
E) creating a fundamental change in the marketplace
57) When products like cell phones are promoted as a safety device for working women and
moms, this demonstrates that one way to find “new” markets is to ________.
A) develop product penetration strategies
B) sell added benefits to the existing customers
C) reposition the existing products targeting different customer segments
D) alter the cost so more people can afford the product
E) create advertisements targeting working women and moms
58) Customers view new products much differently than companies view them. Customers care
only if a product is ________.
A) new to their retail store
B) new to them
C) offered through a new outlet
D) offered online instead of at a brick-and-mortar store
E) repositioned to target new markets
59) External sources of generating product ideas include ________.
A) employees from R&D
B) marketing executives
C) customer service representatives
D) customers
E) salespeople
60) Internal sources of generating product ideas include ________.
A) existing customers
B) distributers
C) company salespeople
D) retailers
E) wholesalers
61) Many organizations are too small to have the resources for a national sales force to help
discover new-product ideas. As a consequence, they often use ________ as a link between the
customer and company.
A) distributors
B) parts manufacturers
C) logistics companies
D) server farms
E) suppliers
62) While screening and evaluating ideas, a go-to-market mistake happens when ________.
A) a good idea is prematurely eliminated during the screening process
B) a company fails to stop a bad product idea from moving into product development
C) a company uses only internal sources to generate product ideas
D) a company uses only external sources to generate product ideas
E) a good idea that involves high costs is implemented
63) While screening and evaluating ideas, a stop-to-market mistake happens when ________.
A) a bad idea is allowed to make it to market
B) a company decides to market a product that has a fatal flaw
C) a good idea is pushed forward without knowing the ROI of its execution
D) a good idea is prematurely eliminated during the screening process
E) a company fails to stop a bad product idea from moving into product development
64) In the context of criteria used to prioritize product ideas, time to market refers to the time
taken to ________.
A) create awareness about a product among new market segments
B) generate product ideas using internal forces
C) develop and get the product to market
D) get the product through the introduction stage to the growth stage
E) analyze market conditions to forecast sales
65) The first step in the new-product development process is to ________.
A) define the market opportunity
B) generate new-product ideas
C) define the product potential
D) develop the product
E) conduct business case analysis
66) Which of the following is an overall evaluation of a product and usually assesses the
product’s probability of success?
A) business case analysis
B) portfolio review
C) trend prediction
D) situation analysis
E) SWOT analysis
67) New purchases of new products are called ________ purchases.
A) original
B) subliminal
C) replacement
D) trial
E) repeat
68) Estimating total demand is a function of three separate purchase situations, which are
________ purchases.
A) new, ideal, and impulse
B) new, repeat, and replacement
C) new, repeat, and impulse
D) new, impulse, and replacement
E) new, convenient, and impulse
69) In the context of product testing, beta testing is designed to ________.
A) encourage customers to evaluate and provide feedback on a prototype
B) let engineers test a product’s performance
C) give fake information to competitors about a new product
D) allow product specialists to check the quality of a product
E) clarify the basic operationalization of a product
70) Market testing of a new product can take a long time, and this can result in ________.
A) competitors being able to develop marketing strategies to counter a product launch
B) the company losing the excitement of a new product
C) the product becoming obsolete by the time it reaches the target market
D) online guerrilla tactics by competitors that will disrupt the sales cycle of the product
E) customers forming negative opinions about the product