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Indicate whether the statement is true or false.
1. The assortment of product lines and individual product offerings that a company sells is known as its product
cluster.
a. True
b. False
2. Service quality refers to the expected and perceived quality of a service offering.
a. True
b. False
3. A consumer that is aware of a new product and gathered information about the product so he or she can
consider the benefits of the new product compared to what he or she currently uses is in the evaluation stage of
the new-product adoption process.
a. True
b. False
4. The depth of product mix refers to the variations in each product the firm markets in its mix.
a. True
b. False
5. The adoption process captures the steps individuals go through in deciding to use a new product. Fortunately,
marketers know what stage to focus on since all consumers move through the adoption process at the same
time.
a. True
b. False
6. A company sent free samples of its new shampoo to a researched list of potential customers. This strategy is
most likely to accelerate the evaluation and trial stages of the consumer adoption process.
a. True
b. False
7. Consumer innovators are individuals who rely on the experiences of initial buyers before making trial
purchases.
a. True
b. False
8. The right blend of product lines and individual products allows a firm to maximize sales opportunities within
the limitations of its resources.
a. True
b. False
9. The product life cycle is particularly useful for product managers since all the categories are
equal length.
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a. True
b. False
10. Compared to first adopters, later adopters rely more heavily on impersonal information sources while
purchasing new products.
a. True
b. False
11. Product lifecycles can stretch indefinitely as a result of decisions designed to increase the frequency of use
by current customers; increase the number of users for the product; or change package sizes, labels, or product
quality.
a. True
b. False
12. In the maturity stage of a product lifecycle, differences between competing products diminish as competitors
discover the product and promotional characteristics most desired by customers.
a. True
b. False
13. In the maturity stage, heavy promotional outlays emphasize any differences still separating competing
products, and brand competition intensifies.
a. True
b. False
14. The consumer adoption process spans from awareness of a product to its acceptance or rejection after a
purchase has been made.
a. True
b. False
15. A market development strategy concentrates on developing new products for existing markets.
a. True
b. False
16. In the awareness phase of the consumer adoption process, consumers make a trial purchase of an item to
determine its usefulness.
a. True
b. False
17. If potential buyers can observe an innovation’s superiority in a tangible form, the adoption rate increases.
a. True
b. False
18. A product diversification strategy focuses on developing entirely new products for new markets.
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a. True
b. False
19. Internal analysis involves gathering information about the benchmark partner to find out why the partner is
perceived as the industry’s best.
a. True
b. False
20. Even if a new product tests well in the market and reaches the commercialization stage, it may still take a
while to catch on with the general public.
a. True
b. False
21. Companies test market their new-product offerings to measure consumer reactions under normal competitive
conditions.
a. True
b. False
22. The screening and business analysis stages of new-product development determine the product’s financial
and technical requirements.
a. True
b. False
23. A service encounter is a point at which a consumer interacts with a service provider.
a. True
b. False
24. Internal analysis in the benchmarking process establishes a baseline for comparison.
a. True
b. False
25. The diffusion process focuses on the speed at which an innovative product is accepted or rejected by all
members of a community or social system.
a. True
b. False
26. Benchmarking is utilized to assess quality by comparing performance against industry leaders.
a. True
b. False
27. While we discuss four stages of the product life cycle, the fact is most products never actually reach the decline
stage.
a. True
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b. False
28. A market penetration strategy seeks to increase sales of existing products in existing markets.
a. True
b. False
Indicate the answer choice that best completes the statement or answers the question.
29. Zara Inc., a well-known cosmetics manufacturer, introduced its anti-wrinkle cream in the Asian market after
its sales in the European market leveled out due to stiff competition from rival products. This is an attempt to
extend product lifecycle by:
a. increasing the frequency of use.
b. increasing the number of users.
c. finding new uses.
d. changing product quality.
30. The assortment of product lines and individual product offerings a company sells is called its product _____.
a. mix
b. cluster
c. pack
d. bunch
31. Malik has an iPhone X and an Apple laptop. He is very happy with both of the Apple products he owns.
More recently, Malik has considered an Apple Watch. Malik has been aware of the Apple Watch for years, but
is just now gathering information about the Apple Watch and its capabilities. Malik is in the ______ stage of
the new-product adoption process.
a. interest
b. awareness
c. trial
d. adoption
32. Nike actually started as Blue Ribbon Sports in 1964. Taking the name Nike in 1971, the company was
narrowly focused on running shoes, with the soles of the first shoes made in a waffle iron. Over time, the
company expanded their shoe business to include shoes for all sports, and then sports equipment and apparel. It
is not unusual to see a person dressed from head to foot in Nike gear and using Nike equipment as well. From
this meager start, it seems Nike has engaged in:
a. product development.
b. market penetration.
c. diversification.
d. market development.
33. Some new products are introduced and quickly are accepted by the marketplace. Other products take years
before they spread across society. A product that has a very clear advantage compared to the current products is
likely to diffuse across society:
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a. more quickly than a product with a slight advantage.
b. more slowly than a product with a slight advantage.
c. relative advantage has no effect on diffusion.
34. All of Martin’s friends recognize that he knows a lot about cars. He is very up–to-date on new models and knows
about the performance and reliability of almost every car. His friends often ask Martin for his guidance when they are in
the market for a new car. Martin can be considered a(n) _________ in regard to automobiles.
a. opinion leader
b. action leader
c. category influencer
d. decision guider
35. A _____ strategy concentrates on finding new markets for existing products.
a. market penetration
b. market development
c. product development
d. product diversification
36. External analysis, conducted during the process of benchmarking, involves:
a. establishing a baseline for comparison with industry leaders.
b. identifying business processes that need improvement.
c. identifying the strengths and weaknesses of the firm’s internal processes.
d. gathering information about competing firms perceived as leading performers.
37. 360 degree cameras provide a complete view of any situation. However, the cost of these cameras is still
quite expensive, and they are growing their share of the market very slowly. With low-sales volume,
manufacturers are still not making a profit on the cameras, but they are optimistic sales will increase in the
coming year and eventually start to show profits. 360 degree cameras are in the __________ stage of the
product life cycle.
a. introduction
b. decline
c. growth
d. maturity
38. The original Hummer H1 was developed and manufactured by AM General solely for the military branches.
However, after publicity from photographs of its use in Operation Desert Storm, the vehicle was introduced into the
consumer market in 1992. The sight of one of these military vehicles being used to haul kids to soccer games was
entertaining! Selling the Hummer to consumers is an example of:
a. market development.
b. market penetration.
c. product development.
d. diversification.
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39. One model in the marketing discipline discusses four stages of products – the progression through
[GMK1] introduction, growth, maturity, and decline. This model is known as:
a. product life cycle.
b. new-product adoption process.
c. diffusion of innovation.
d. new-product development process.
40. Researchers at the Massachusetts Institute of Technology (MIT) have built a solar energy device quite
different from the traditional solar cell. Known as thermophotovoltaics, these devices are able to capture far
more energy from the Sun by turning the sunlight into heat, and then back into light in a more efficient
spectrum. Of course, it will take some time before this technology is profitable and widely distributed. These
thermophotovoltaics hot cells are in the __________ stage of the product life cycle.
a. introduction
b. decline
c. growth
d. maturity
41. Cameron is involved in the new product development process at Bose Corporation. Currently, Cam is
assessing the potential market for a noise cancelling system for automotive exhaust. Cam’s job is to determine
the overall size of the market and projected annual sales of the system. Essentially, he is responsible for
determining the overall financial feasibility of this concept before more time and money is invested in
developing the system. Cam’s analysis is part of the _________ stage of the new product development:
a. business analysis
b. idea generation stage
c. screening stage
d. test marketing stage
42. Madeline is an electrical engineer involved in the new-product development process at Bose Corporation.
Currently, Madeline’s project is to develop a prototype of a noise cancelling system for automotive exhaust.
Madeline has feedback from consumers and what they want to see in the new product and must now design and
build a working version of the concept. Madeline’s analysis is part of the _________ stage of the new-product
development.
a. development
b. concept testing
c. screening
d. business analysis
43. Responding to moviegoers’ recently renewed interest in the 3D format, Panasonic introduced the world’s
first 3D home entertainment system. This strategy used by Panasonic is an example of a _____.
a. market engagement strategy
b. market simulation strategy
c. product development strategy
d. product association strategy
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44. After a new-product concept is identified, it needs to be assessed through focus groups and in-store polling.
What is the consumer reaction to the concept? These activities are part of the _________ stage of the new-
product development.
a. concept testing
b. idea generation
c. screening
d. business analysis
45. Marcia’s company is at the commercialization stage of new-product development. Before company
executives move forward with this stage, what advice can you give them?
a. Focus on the cannibalization of existing products.
b. Focus on the promotional mix rather than the distribution mix.
c. The marketing mix should be planned before the selection of the target market.
d. The launch date should coincide with a good economic situation to maximize sales.
e. Target only opinion leaders because they are the ones who will spend the most money on the product.
46. Wilma is an older consumer that is very hesitant to buy new products. In fact, Wilma still has a landline
phone and listens to music on a cassette deck. When asked a cell phone, Wilma responded, “Those new-fangled
things are just not for me!” Wilma would fall into the ______ category of the diffusion process.
a. laggard
b. innovator
c. early majority
d. early adopter
47. Most comparative advertisements are targeted toward current users of a product or its close competitor(s).
For example, McDonald’s and Burger King advertisements compare the methods of cooking their burgers, each
inferring their approach is better. While most consumers dine at both of these restaurants, the goal of these
advertisements is to increase sales by “flipping” a customer from one to the other. These advertisements are an
approach at:
a. market penetration.
b. market development.
c. product diversification.
d. product development.
48. While Cheerios have been around for nearly 80 years, General Mills developed the gluten-free version of the
Cheerios just 2 years ago. To introduce the new product, heavy television advertising campaigns were launched to create
awareness about the product. Additional promotions were introduced to induce distribution partners, like wholesalers and
retailers, to carry the product. From these activities, it appears General Mills treated the Gluten-Free Cheerios as in the
_______ stage of the product life cycle.
a. introduction
b. decline
c. growth
d. maturity
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49. Samantha is well integrated locally and considered a fashion leader among her friends. While she very
rarely buys faddish clothing, she is one of the first in her group to buy a style as soon as it is established. Many
of her friends rely on her opinion when purchasing clothing. As far as the diffusion process goes, Samantha
should be considered a(n):
a. early adopter.
b. innovator.
c. early majority.
d. laggard.
50. The _____ strategy seeks to increase sales of existing products in existing markets.
a. product development
b. market innovation
c. product diversification
d. market penetration
51. Which of the following variables of service quality best represents the service provider’s understanding of
the customer’s needs?
a. Tangibles
b. Assurances
c. Empathy
d. Reliability
52. Vandelay Industries has been selling their latex products to the medical community for over a decade.
However, George Costanza, the President of Vandelay, has decided that relying on a single product line and
single market segment is too risky. George has decided to pursue both new products and new markets in the
future. Vandelay Industries is seeking:
a. diversification.
b. market development.
c. product development.
d. market penetration.
53. Organic Hair Care Inc. markets a brand of shampoo and a brand of conditioner. The firm is now adding several new
sizes of each brand. This means OHC is changing its product mix _____.
a. depth
b. length
c. width
d. breadth
e. depth and breadth
54. Lorelei needs a new computer for college. She has never had a computer with a touch screen before, but has
watched her roommate, Geneva, use her Lenovo Yoga 920 with a touch screen and digital pen. Geneva let Lorelei use
her computer for the weekend when she went home. Lorelei is in the ______ stage of the new-product adoption
process.
a. trial
b. interest
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c. adoption
d. awareness
55. ALDI was first started in Germany in 1946 by brothers Theo and Karl Albrecht. However, it would take 30
years before they took their concept to the United States, opening the first U.S. store in Iowa in 1976. Based on
the same concept as the stores in Europe, ALDI now has 1,600 stores in 35 states. ALDI bringing their concept
to the United States is an example of:
a. market development.
b. market penetration.
c. diversification.
d. product development.
56. The Apple iPad was a revolutionary device was introduced in 2010. There was nothing like it on the market and,
despite its price of nearly $700, sales immediately took off. In fact, over 300,000 iPads were sold in the United States
alone in the first 24 hours after release. There was really nothing like it on the market. While still a highly profitable
product, there are now many alternative products on the market and iPad sales are starting to decline. The iPad is in the
_______ stage of the product life cycle.
a. maturity
b. decline
c. introduction
d. growth
57. The Gillette Company has a long history of developing shaving-related products for men and women. In
addition, it continuously produces products that feature improvements to existing technologies, including three-
bladed disposable razors and ergonomically superior handle designs.
To maintain its success in new-product development, Gillette regularly organizes several small focus groups
comprising people who shave in order to gain insights into what these individuals look for in a
razor/blades/shaving system. At which step of the new-product development process is Gillette when it
conducts these focus groups?
a. Idea generation step
b. Commercialization step
c. Development step
d. Business analysis step
e. Screening step
58. You are the manager for the consumer product adoption strategies department of your firm. Your job
requires you to manage the third stage of the five-stage consumer product adoption process. Which of the
following statements is true in regard to your job focus?
a. You should focus on making sure buyers are aware of your product’s existence.
b. You should focus on encouraging the current buyers of your product to become repeat buyers.
c. You should focus on making sure buyers clearly understand your product‘s benefits.
d. You should focus on providing information about your product.
e. You should focus on encouraging buyers to just try your product.
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59. Organizations may have only a few products or many products in a product line. Consider Campbell Soup Company,
which offers over 50 condensed soups. In the soup line, Campbell Soup Company has a:
a. deep product line depth.
b. narrow product line depth.
c. shallow product line depth.
d. diverse product lines.
60. Marilyn is a grandmother to three and lives in Oklahoma City. She still uses her DVD player but her grand
kids are wanting to watch shows on Netflix when they visit her house. She does have high-speed Internet
access but does not yet have a Netflix account. However, she plans to subscribe to Netflix in the next several
weeks. Netflix has over 40 million paid subscribers in the United States representing approximately 30% of
total United States households. Netflix continues to add several million subscribers every quarter. Which
category of “adopter” would best describe Marilyn?
a. Early majority
b. Consumer innovator
c. Early adopter
d. Laggard
61. Aldi is a chain of discount supermarkets based in Germany. The company has recently started opening stores across
the United States. Based on this information, the product development strategy being pursued by Aldi is known as a
_______ strategy.
a. market penetration
b. market development
c. product penetration
d. product development
e. diversification
62. A company that desired to spread its risk by offering a breadth of products and to a variety of markets is
engaged in _____________. This approach would reduce unsystematic risk as when one industry was doing
poorly, they still could profit from customers in other industries.
a. diversification
b. product development
c. market development
d. market penetration
63. Apple customers have a high degree of brand loyalty. Starting with the Apple I in 1976, Apple has
introduced a stream of products for their customers. Look around your classroom and you are likely to see
Apple laptops and the same students with an iPhone and perhaps an Apple Watch. Apple has largely grown
their business through:
a. product development.
b. market penetration.
c. diversification.
d. market development.
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64. Annie’s Inc., which produces vinegar for cooking purposes, identified new uses for its product and started
promoting it as a fabric softener and a cleansing product. The company started selling the same product in
different packages modified for different types of uses. This strategy used by Annie’s to increase the sales of its
product is an example of a _____ strategy.
a. brand extension
b. line engagement
c. market penetration
d. product diversification
65. Marta’s company wants to revamp its potato chips brand to compete with Lay’s potato chips. She has been
researching consumer preferences so that she can market her company’s chips accordingly. What type of
strategy is Marta using?
a. Product diversification strategy
b. Product development strategy
c. Market development strategy
d. Product positioning strategy
e. Market penetration strategy
66. At the _____ stage in the consumer adoption process, buyers consider the likely benefits of the product.
a. awareness
b. trial
c. interest
d. evaluation
67. Tina is a customer service representative for an Internet service provider. While dealing with elderly
customers, Tina takes extra time and effort in explaining to them how to access the Internet, check emails, and
browse the Web. She understands their viewpoint, and realizes that they may need more explanation than the
tech-savvy, younger generation. By doing so, which of the following variables of service quality is being
demonstrated by Tina?
a. Associability
b. Tangibles
c. Empathy
d. Substitutability
68. _____ involves measuring quality by comparing performance against an external industry leaders or
competitor firm.
a. Benchmarking
b. Social referencing
c. Satisficing
d. Social loafing
69. Variations in each product a firm markets in its mix are referred to as the _____ of its product mix.
a. width
b. length
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c. depth
d. volume
70. Procter & Gamble has nearly 100 brands of consumer package goods. These are organized into many different
groups, including Baby, Family & Feminine Care, Beauty, and Fabric & Home Care. Each of these groups has several
products. All of the Procter & Gamble brands together are Procter & Gamble’s:
a. product mix.
b. product lines.
c. corporate offering.
d. company groups.
71. General Electric offers a wide range of products and services for a variety of markets. Not only does GE sell
to consumer markets, but to industrial markets as well. The variety of the offering is impressive, from light
bulbs to jet and turbo prop engines. General Electric has engaged in:
a. diversification.
b. product development.
c. market penetration.
d. market development.
72. A tech company is set to release a new watch with a built-in exercise and cholesterol monitor around the
holidays. Because the product is new to the market, consumers know very little about it. The company wants to
ensure that by the time the holiday season arrives, consumers are well informed and ready to make major
purchases.
Required:
Which of the following steps should the company take to market its new product efficiently?
a. Limit the number of distribution channels
b. Develop a campaign that focuses on product features
c. Highlight the drawbacks of competing products on the market
d. Spend money on fine-tuning the product rather than on marketing
e. Establish a call center so consumers can phone and have their questions answered
73. Promotional campaigns conducted by a firm during the introductory stage of a product lifecycle generally
focus on:
a. informing the market about the product and explaining its features.
b. reducing the size of the available market through selective advertising.
c. comparing the firm’s product with those of competitors.
d. communicating new and alternate uses for the product.
74. A new-product concept has to show that it has financial feasibility. How large is the market? Could the
new product gain a reasonable marketing share? Can it be profitable at expected sales levels? These are just
some of the questions that need to be addressed in the _________ stage of the new-product development.
a. business analysis
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b. idea generation
c. screening
d. test marketing
75. In one of the more creative developments in global trade, Pepsi struck a deal with the Russian government in
1972 to trade their cola syrup for Stolichnaya vodka. Pepsi would send the syrup to Russia for local soft drink
bottlers, while Pepsi would receive vodka to distribute in the United States. At the height of the Cold War,
residents in then communist Russia could enjoy the same Pepsi as American consumers. Pepsi was able to
grow sales through:
a. market development.
b. market penetration.
c. product diversification.
d. product development.
76. With reference to the five characteristics of a product innovation, a product innovation is said to have a
greater _____, if it is superior to previous ideas reflected in terms of lower price, physical improvements, or
ease of use.
a. associability
b. compatibility
c. relative advantage
d. observability
77. Which of the following is most likely to be true of consumer innovators?
a. They are unlikely to display brand loyalty toward products.
b. As compared to later adopters, they are less likely to take risks.
c. They tend to be the most highly educated of the consumer groups.
d. They are less mobile, and do not prefer changing jobs often.
78. At the _____ stage in the consumer adoption process, potential buyers begin to seek information about the
product.
a. trial
b. evaluation
c. interest
d. adoption
79. In the context of the consumer diffusion process, “_____” constitute the final group of consumers that make
trial purchases of a new product.
a. innovators
b. late majority
c. early purchasers
d. laggards
80. A major manufacturer of men’s shaving products has developed a prototype of an electric shaver featuring a
vacuum attachment to capture virtually all hair. It’s targeted to men who have facial hair – beards, mustaches, or
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goatees who like a trimmed appearance but dislike all the hairs that fall into the sink or bathroom counter top.
The engineers create several prototypes and have members of their marketing research team gauge consumer
response to the new product by conducting personal interviews with men who have facial hair. The company
hopes that if the product is favorably received, the new product will be more successful in the marketplace.
This is an example of:
a. concept testing.
b. screening.
c. test marketing.
d. commercialization.
81. On a recent trip to the grocery store, Jackson noticed an in-store tasting event for a new line of yogurt-based
dips. The store was providing product sampling and a coupon for 0.50 off the purchase price. Jackson tried the
French Onion flavor and liked it so much he decided to purchase it for an upcoming party at his home. Which
characteristic influencing adoption rates does this represent?
a. Possibility of trial use
b. Complexity
c. Relative advantage
d. Observability
82. Which of the following is the first main activity involved in benchmarking?
a. Comparing internal processes to those of industry’s performance leaders
b. Identifying the strengths and weaknesses of a firm’s internal processes
c. Implementing changes for quality improvement
d. Identifying critical market segments
83. Marketing activities tend to change over the product life cycle. What stage of the life cycle focuses on stimulating
demand by using advertising to communicate product features and persuading channel members for carry the product?
a. Introduction
b. Growth
c. Maturity
d. Decline
84. Rangers, a firm that provides a towing service, boasts of a very consistent performance track record and
promises a quick and good quality service “anytime, anywhere.” According to this information, Rangers is
focusing on which of the following variables of service quality?
a. Reliability
b. Sympathy
c. Empathy
d. Substitutability
85. Samuel is an average American – in regard to virtually every demographic characteristic. Samuel is 45
years old, married with one child, and a first-level manager at Caterpillar in Peoria, Illinois. Samuel is
thoughtful and pragmatic in his purchasing decisions, but doesn’t want to be left behind. Samuel should be
considered a(n):
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a. early majority consumer.
b. innovator.
c. early adopter.
d. laggard.
86. Arm & Hammer continues to introduce new products based on the “eliminates odors” selling proposition. A couple
of years ago, one of Arm & Hammers winners was the Arm & Hammer Cat Litter. This product has had initial success
and sales are still increasing. Which of the following marketing activities would be appropriate now for the A & H Cat
Litter?
a. Providing coupons to motivate hesitant buyers to try the item
b. Communicating product details through television advertising
c. Design a new packaging for the product
d. Drop the cat litter line
87. You have been assigned the overwhelming task of managing all your firm’s products in the decline stage.
Which of the following steps are you least likely to take?
a. Develop strategies to increase how frequently the product is used
b. Develop strategies to identify a new target market and/or new customers
c. Develop an aggressive, resource-intensive marketing mix for products in the decline stage
d. Develop rebranding strategies and identify new ways to make the products more appealing
e. Develop a social media campaign that will excite current customers and induce them to buy more of
these products
88. Some organizations offer only very closely related products (such as Campbell Soup Company) while others have a
wide range of products (such as General Electric). The variance among the product mix is usually reflected in the
number of different product lines. A company like GE with many divergent product lines has a:
a. wide product mix.
b. deep product mix.
c. narrow product mix.
d. shallow product mix.
89. Uber is considering adding a service to their current offering. Instead of picking up people and taking them
to their destination, Uber is thinking about adding a local pickup and delivery service for things such as
documents, packages, and food products. With Walmart now offering pickup grocery service, a person could
order and have Uber actually do the pickup and delivery. Focus groups indicate that there is a potentially large
demand for this service. Before introducing this across the Uber system, Uber has chosen to try the service out
in Phoenix and St. Louis. The pickup and delivery service is in the_________ stage of the new-product
development.
a. test market
b. concept test
c. field exam
d. commercialize
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90. Procter & Gamble has nearly 100 brands of consumer package goods. However, these products are not just
randomly organized, but put into categories to help manage them. For example, paper towels and napkins include
Bounty Basic Paper Towels, Bounty Paper Towels, and Bounty Napkins. Paper towels and napkins represent one of
Procter & Gamble’s:
a. product lines.
b. corporate groups.
c. product brands.
d. company segments.
91. Arm & Hammer has sold baking soda for well over 150 years. While a staple in most homes, a customer
only needs so much baking soda! However, Arm & Hammer was able to increase sales by convincing
customers that the same baking soda they kept in their cabinet for baking could be put in their refrigerator and
freezer to remove odors. Now, customers are buying three boxes of Arm & Hammer baking soda! In this case,
Arm & Hammer was able to grow sales through:
a. market penetration.
b. market development.
c. product diversification.
d. product development.
92. When a product experiences declining sales for an extended period, it is likely entering the decline stage of the
product life cycle. Which of the following IS a reasonable strategy at this stage?
a. Prune the product line to streamline production and reduce costs
b. Provide coupons to motivate hesitant buyers to try the item
c. Communicate product details through television advertising
d. Provide incentives for retailers to handle the product
93. Your company recently released an ad campaign to promote its new tablet. Shortly thereafter, your company
publishes a series of blogs and articles about the product and sets up hotlines so people can call in to find out
more information about the product and its release date. At which stage of the adoption process are consumers
operating?
a. Trial
b. Interest
c. Evaluation
d. Awareness
e. Adoption
94. A product that is in the mature stage of the product life cycle has reached a plateau in sales with many competitors
existing in the marketplace. An example of this would be:
a. digital cameras.
b. VHS video players.
c. self-driving cars.
d. 3D printers.
95. Ramon is a sales representative for a medical device company and works with orthopedic surgeons. During
his discussions with surgeons about their work and the type of tools or devices that would help them perform
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chapter 12
better, he began to receive several interesting suggestions that Ramon passed along to the new product-
development team. What stage in the new-product development process does this represent?
a. Idea generation
b. Screening
c. Development
d. Test marketing
96. As head of marketing for Clarity Eyewear, you are focused on developing a promotional campaign that provides
information about the product’s features. You are also working to induce channel members to stock it. Unfortunately, the
company is experiencing some technical problems and financial losses related to the product. Clarity Eyewear is most
likely in which stage of the product lifecycle?
a. Growth
b. Maturity
c. Introductory
d. Decline
e. Research and development
97. A _____ strategy focuses on developing entirely new products for new markets.
a. market penetration
b. market development
c. product development
d. product diversification
98. Angelina is involved in the new-product development process at Bose Corporation. Currently, Angelina is
assessing consumer reaction to a noise cancelling system for automotive exhaust. While not a full test market,
Angelina is conducting focus groups to see if consumers like the idea and have generally positive perceptions.
Angelina’s analysis is part of the _________ stage of the new-product development.
a. concept testing
b. idea generation
c. screening
d. business analysis
99. Lauren was at the grocery store when she noticed a person sampling frozen yogurt in a tube. Lauren has
never seen the product before that day. According to the new-product adoption process, Lauren is in the _____
stage.
a. awareness
b. interest
c. evaluation
d. trial
100. Promoting the use of oatmeal as a cholesterol reducer and antacids as a calcium supplement is most likely
to be examples of extending the lifecycle of the product by:
a. improving product quality.
b. changing package sizes.
c. increasing the frequency of use.