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Chapter 11 MKTNG Review

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review for exam
Savvy Individuals
Quiz by Savvy Individuals, updated more than 1 year ago
Savvy Individuals
Created by Savvy Individuals about 6 years ago
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Question 1

Question
Hakimo Corp., a multinational corporation that specializes in audio equipment, has developed a wireless speaker that sits unobtrusively on a desktop. The tiny, yet strong, twin speakers use Bluetooth to stream music directly from a PC or MP3 player. This small wireless speaker, which is radically different from anything currently on the market, can most likely be classified as a:
Answer
  • repositioned product
  • discontinuous innovation.
  • lower-priced product.
  • revision of an existing product.

Question 2

Question
Which of the following is true of customer innovation centers?
Answer
  • They depend largely on distributors to gather information about customer needs and expectations.
  • They involve key suppliers early in the process, capitalize on their knowledge, and enable them to develop critical component parts.
  • They provide a forum for meeting with customers and directly involving them in the process of developing new ideas.
  • They require a grouping of employees who can brainstorm and suggest ideas for new products to meet customer needs.

Question 3

Question
Which of the following is true of product modification?
Answer
  • It entails the creation of marketable new products
  • It necessitates the use of crowdsourcing to develop new ideas for a product.
  • It goes beyond applied research by converting applications into marketable products.
  • It makes cosmetic or functional changes to existing products.

Question 4

Question
Daily Farm is a manufacturer of consumer goods such as foods, beverages, cleaning agents, and personal care products. It is expected to introduce more than ten new products in the next two years. One of the products is a spicier variant of its tomato ketchup aimed at the baby boomer market. Which of the following categories of new products will the spicier ketchup represent?
Answer
  • Repositioned product
  • Revision of existing product
  • New product line
  • Addition to existing product line

Question 5

Question
Which of the following is true of the development stage of a new-product development process?
Answer
  • It sets several tasks in motion, such as building inventories and advertising to potential customers.
  • It evaluates a new-product idea usually before any prototype has been created.
  • It estimates the demand, cost, sales, and profitability of a product for the first time.
  • It examines the feasibility of manufacturing a product at an acceptable cost.

Question 6

Question
Why are marketing costs high in the introductory stage of the product life cycle?
Answer
  • Cutthroat competition during the introductory stage can lead to price wars.
  • Sales increase rapidly during the introductory stage, requiring greater investment for marketing.
  • High dealer margins are often needed to obtain adequate distribution.
  • Product and manufacturing costs need to be identified and corrected.

Question 7

Question
Why do most firms consider test marketing essential for new products?
Answer
  • The high price of failure simply prohibits the widespread introduction of new products without testing.
  • The speed, safeness, and reliability of test marketing is higher than that of simulated market testing.
  • The ability of test marketing to evaluate consumer preference for a new product prior to developing a prototype increases its importance.
  • The decision to test a product sets several tasks in motion, such as ordering product materials, starting production, building inventories, and advertising to potential customers.

Question 8

Question
Which of the following is a feature of the product life cycle (PLC)?
Answer
  • It allows firms to shorten the development process of a product and reduce costs.
  • It helps marketers forecast future events and suggest appropriate strategy.
  • It dictates the marketing strategy to be used for a product.
  • It tells managers the length of a product's life cycle or its duration in any stage.

Question 9

Question
A difference between early majority and early adopters is that early majority are:
Answer
  • more likely to be opinion leaders.
  • more eager to try new products and ideas, almost as an obsession.
  • likely to collect more information and evaluate more brands.
  • less likely to extend the adoption process.

Question 10

Question
The purpose of the screening stage in a new-product development process is to:
Answer
  • refine the promotion campaign to be used with the new product.
  • eliminate ideas that are inconsistent with an organization's new-product strategy.
  • identify and eliminate concept tests that might lead to duplication of experiments.
  • set a limit on the number of members allowed to assess the viability of a new-product idea.

Question 11

Question
The purpose of test marketing is to:
Answer
  • eliminate ideas that are inconsistent with an organization's new-product strategy.
  • shorten the development process of a product and reduce costs.
  • assess how well various aspects of the marketing mix fit together.
  • evaluate a new-product idea before any prototype is created.

Question 12

Question
Which of the following is an advantage of simultaneous product development?
Answer
  • It shortens a product's development process.
  • It ensures that a development process proceeds through highly structured stages.
  • It lengthens product lines to appeal additional markets.
  • It eliminates the need for test marketing a new product.

Question 13

Question
Steve wanted to open a day care service facility for dogs. He estimated the costs involved in providing the services desired by dog owners. After extensive deliberation, Steve decided not to proceed with the plan as the cost of providing the services was too high compared to the rates dog owners would be willing to pay. Which of the following stages of the new-product development process has Steve used to arrive at this decision?
Answer
  • Idea screening
  • Business analysis
  • Idea generation
  • Test marketing

Question 14

Question
Which of the following is true of laggards?
Answer
  • They are more likely to get their information from scientific sources and experts.
  • They act as an important link in the process of diffusing ideas.
  • They are eager to try new products and ideas, almost as an obsession.
  • They have the longest adoption time and the lowest socioeconomic status.

Question 15

Question
Which of the following is true of laggards?
Answer
  • They are more likely to get their information from scientific sources and experts.
  • They act as an important link in the process of diffusing ideas.
  • They are eager to try new products and ideas, almost as an obsession.
  • They have the longest adoption time and the lowest socioeconomic status.

Question 16

Question
Which of the following is a feature of a new-product strategy?
Answer
  • It traces all stages of a product's acceptance, from its introduction to its decline.
  • It provides general guidelines for generating, screening, and evaluating new-product ideas.
  • It increases the time spent by a product in the introduction stage of its life cycle.
  • It gives greater importance to highly structured development process rather than simultaneous development.

Question 17

Question
The business analysis stage of a new-product development process _____.
Answer
  • involves the development of a prototype of the proposed product
  • calculates preliminary figures for demand, cost, sales, and profitability
  • eliminates ideas that are inconsistent with an organization’s new-product strategy
  • decides on a product’s packaging, branding, labeling, and so forth

Question 18

Question
The process where all the involved areas—R&D, marketing, engineering, production, and even suppliers—work together rather than sequentially during a product’s development is called _____.
Answer
  • simultaneous product development
  • test marketing
  • simulated market testing
  • choice modelling

Question 19

Question
The maker of Protect Your Hands hand sanitizer decided to test its consumers’ reactions to one of its new products, Protect Your Hands Sanitizing Wipes. It sent out flyers advertising several of the company’s products along with the new product to select customers of the target market. The flyer also asked the customers to shop in a mock store filled with real products, including the new product. In this case, the maker of Protect Your Hands has used -_____.
Answer
  • crowdsourcing
  • simulated market testing
  • concept testing
  • product simulation

Question 20

Question
During the _____ stage of the new-product development process, production starts, inventories are built up, the product is shipped to distribution points, the sales force is trained, and advertising and promotion begin.
Answer
  • commercialization
  • test marketing
  • idea generation
  • business analysis

Question 21

Question
Jeni’s Splendid Ice Creams has decided to put its new Beet Cake with Black Walnut ice cream on the market. This product has entered the _____ stage of new-product development process.
Answer
  • business analysis
  • development
  • test marketing
  • commercialization

Question 22

Question
_____ are the first 2.5 percent of all those who first adopt a new product.
Answer
  • Innovators
  • Early adopters
  • Laggards
  • Early majority

Question 23

Question
Roger is always eager to own the latest cell phone model launched in the market. He makes it a point to buy new cell phones on the first day of their launch. He is also an active member of various online forums that discuss the latest technical developments. In this case, Roger is a(n) _____.
Answer
  • laggard
  • innovator
  • early majority
  • late majority

Question 24

Question
In the context of the product characteristics that can be used to predict and explain the rate of acceptance and diffusion, _____ represents the degree of difficulty involved in understanding and using a new product.
Answer
  • complexity
  • compatibility
  • observability
  • trialability

Question 25

Question
_____ have the longest product life cycles.
Answer
  • Product categories
  • Product items
  • Individual brands
  • New products

Question 26

Question
_____ are typically categorized by a sudden and unpredictable spike in sales followed by a rather abrupt decline.
Answer
  • fad items
  • Consumer durable goods
  • Product trends
  • Product life cycles

Question 27

Question
Central Bark Doggie Day Care opened the first day care center for dogs. It currently has 31 locations, with a new Gainesville, Florida, location coming soon. The concept of day care center for dogs became so popular that other competitors begin to enter the market. With competing companies such as Camp Bow Wow and others entering the market, it can be said that the concept of day care center for dogs is moving into the _____ stage of a product life cycle.
Answer
  • introductory
  • growth
  • maturity
  • decline

Question 28

Question
In the context of the product life cycle, a long-run drop in a product’s sales signals the beginning of the _____.
Answer
  • introductory stage
  • growth stage
  • maturity stage
  • decline stage

Question 29

Question
Nutritreat Industries Corp. is a manufacturer of food products. The company introduced chocolate cookies to the local market. After a period of initial success, the product lost its market and Nutritreat decided to withdraw chocolate cookies from the market. This scenario is an example of the _____ stage of a product life cycle.
Answer
  • decline
  • introduction
  • growth
  • maturity
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