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62) The innovation management system approach yields two favorable outcomes: it helps create
an innovation-oriented company culture, and it ________.
A) clearly assigns responsibility for the process to a single department
B) yields a larger number of new-product ideas
C) guarantees successful products
D) frees up senior management time
E) requires less budget support
63) Which term refers to the course that a product's sales and profits take over its lifetime?
A) total product process
B) service life
C) product mix
D) product life cycle
E) marketing mix
64) Which of the following best characterizes the decline stage of product development?
A) rapid market acceptance
B) slow sales growth
C) sales and profits decline
D) high investment costs
E) increasing profits
65) Which of the following statements characterizes the introduction stage of the PLC?
A) There are increased marketing outlays.
B) Profits are nonexistent.
C) The company incurs minimal expenses.
D) The product achieves acceptance by most potential buyers.
E) Promotional expenditures are zero.
66) Which stage in the product life cycle is characterized by rapid market acceptance and
increasing profits?
A) introduction
B) maturity
C) growth
D) decline
E) product development
67) ________ is the product life cycle period when sales fall off and profits drop.
A) Introduction
B) Growth
C) Maturity
D) Decline
E) Product development
68) Some products that have entered the decline stage have been cycled back to the growth stage
through ________.
A) repositioning
B) ambush marketing
C) proximity mapping
D) dumping
E) offshoring
69) A style is best defined as a ________.
A) currently popular trend in retail goods
B) popular consumer taste at a given time
C) temporary period of unusually high sales
D) short-term component of the marketing mix
E) basic and distinctive mode of expression
70) The more formal "business attire" look of corporate dress of the 1980s and 1990s gave way
to the "business casual" look of the 2000s. This is an example of a ________.
A) style
B) fashion
C) fad
D) subculture
E) norm
71) Flurrbies, a brand of unique winter accessories that quickly fell in and out of favorability
with customers, is an example of a ________.
A) style
B) fashion
C) fad
D) norm
E) subculture
72) The PLC concept can be applied by marketers as a useful framework for describing how
________.
A) competitors' moves are predicted
B) marketing strategies are developed
C) products and markets work
D) concept testing is conducted
E) product ideas are developed
73) According to the PLC, the ________ stage is reached when sales plunge to zero, or when
they drop to a low level where they continue for many years.
A) laggard
B) decline
C) maturity
D) growth
E) incubation
74) Which of the following stages of the PLC is characterized with high promotional
expenditures that result from an effort to create consumer awareness?
A) growth
B) product development
C) maturity
D) introduction
E) decline
75) Which of the following stages of the PLC is characterized with the same level or slightly
higher level of promotional expenditures in an attempt to respond to increasing competition?
A) growth
B) decline
C) maturity
D) product development
E) adoption
76) Kellogg's begins to sell its cereals in new markets after conducting extensive marketing
research. After the cereal begins to appear in these new markets, the company increases its
promotion expenditure to check competition. Kellogg's is in the ________ stage of the product
life cycle.
A) introduction
B) growth
C) maturity
D) decline
E) adoption
77) Big Moose Toys is a market pioneer introducing a modern version of Bubble the Moose, a
character from an animated television series originally broadcast in the '50s and '60s. The
company's version of Sandy the Flying Squirrel, a character from the show targeted to baby
boomers, was a strong success. Since the firm is a market pioneer, it needs to make the new
launch strategy for Bubble consistent with the intended ________.
A) pricing
B) product positioning
C) brand extension
D) prototype
E) fad
78) Which stage in the PLC normally lasts longest and poses strong challenges to marketing
managers?
A) growth
B) decline
C) maturity
D) introduction
E) adoption
79) Which of the following would lead to greater competition in the maturity stage of the PLC?
A) overcapacity
B) market pioneers
C) poor management
D) inadequate promotion
E) diminishing budgets
80) Most products in the marketplace are in the ________ stage of the product life cycle.
A) growth
B) decline
C) maturity
D) introduction
E) development
81) Apple's iPod has been called "one of the greatest consumer electronics hits of all time." iPods
have been sold in huge numbers, and Apple captures a large share of the music player market.
This success has attracted many large, resourceful competitors. The iPod is in the ________
stage of the product life cycle.
A) introduction
B) product development
C) maturity
D) decline
E) adoption
82) Over the past few years, Binney and Smith's Crayola crayons have been preferred by users in
more than 80 countries around the world. Crayola crayons are in the ________ stage of the PLC.
A) introduction
B) laggard
C) maturity
D) decline
E) incubation
83) When a product is in the maturity stage, the company should most likely consider ________.
A) harvesting the product or market
B) modifying the product, market, or marketing mix
C) divesting the product line
D) liquidating the firm's assets
E) dropping the product from its market offerings
84) When Heinz introduced EZ Squirt packaging and new colors such as Blastin' Green and
Awesome Orange to revitalize consumer buying, the company was modifying the ________.
A) market
B) pricing strategy
C) distribution
D) product
E) competition
85) P&G has sold off a number of lesser or declining brands such as Oxydol detergent and Jif
peanut butter. In these examples, management decided to ________ the products.
A) modify
B) maintain
C) drop
D) harvest
E) franchise
86) Due to dropping sales, a company that manufactures soaps begins to sell them to restaurants
and hotels to extend their product's life. The soap manufacturer is in the ________ stage of PLC.
A) introduction
B) growth
C) maturity
D) decline
E) development
87) When Kraft focused on cost-cutting with its older, established brands, leaving them to wither
without much investment or modification, Kraft decided to ________ the older products.
A) extend
B) modify
C) drop
D) harvest
E) analyze
88) Manufacturers must comply with specific laws regarding ________.
A) profit margins
B) product quality and safety
C) product harvesting
D) distribution channel length
E) product life cycles
89) Because of ________, a company cannot make its product illegally similar to a competitor's
already established product.
A) anti-monopoly laws
B) patent laws
C) the Consumer Product Safety Act
D) product warranties
E) product liability
90) CellTones, a new company selling several types of cellular phones, has closely modeled its
products after successful products that are already in the marketplace. As it prepares to enter the
market with its new products and services, which of the following should concern CellTones the
most?
A) legal obligations to suppliers and dealers
B) patent laws
C) distribution requirements
D) product liability suits
E) limited warranties
91) Which of the following best describes the role of a product steward?
A) to protect employees and laborers from harm
B) to evaluate new-product ideas against a set of general criteria
C) to develop a new-product concept into a physical product
D) to protect the company from liability by proactively ferreting out potential product problems
E) to decide whether to maintain, harvest, or drop the product in the decline stage of the PLC
92) Which of the following is a consequence of standardizing an international product?
A) image consistency
B) regional design flexibility
C) decreased product demand
D) increased manufacturing costs
E) higher marketing costs
Refer to the scenario below to answer the following questions.
Most people laughed when Evelyn Ringler explained her product idea: a solar-powered vacuum
cleaner. But the concept was practical and the technology used in the vacuum was the same as
that used in many electronic toys. After setting up a demonstration booth in a mall in a Chicago
suburb, Evelyn felt more assured than ever that her idea would be a hit. Consumers seemed
receptive and offered helpful pieces of advice, such as how much they would pay for the
vacuum, what colors they would prefer, and why they would not buy the vacuum.
The vacuum itself was shaped like a small saucer, with a filter bag on top and sensory nodes
along the edges. After being charged in the sunlight, the vacuum could run for 7 hours, covering
a floor area of 600 square feet. As the apparatus lightly bumped into table legs, chairs, and so on,
the sensory nodes allowed the vacuum to move around the objects in various directions. This is
the same type of technology used in the manufacture of children's race cars and walking dolls.
Evelyn knew that the solar-powered vacuum would be especially helpful to both elderly
consumers, who may have a more difficult time with vacuuming, and on-the-go consumers who
lead busy lives. The price would be above average but would likely be reduced after Evelyn
recouped some of her costs.
After a 500-unit production run and a substantial financial investment, Evelyn set up a multiple-
city test market, in a Chicago mall and in an appliance store in New Jersey and several other
retail stores in Florida. "It's such a novel idea," Evelyn added. "People will notice it, even if they
don't buy it right away."
93) Evelyn's ________ is the practical use of solar power in a vacuum cleaner that is designed to
effortlessly vacuum clean the floors of on-the-go and elderly consumers.
A) product placement
B) product concept
C) product image
D) product idea
E) virtual product
