1 The sales and profits of an individual product may not follow the life cycle pattern.
True
A)
False
B)
2 During the sales decline stage of the product life cycle, no firm can earn a profit.
True
A)
False
B)
3 A new product is one that is new in any way for the company concerned.
True
A)
False
B)
4 If an individual is injured by a defective or unsafely designed product, the seller's legal obligation
to pay damages is called product liability.
True
A)
False
B)
False
B)
7 During the introduction stage, what would hinder acceptance of a new product?
A)
consumers may not see the new product as offering a superior alternative to
whatever they are currently using.
the new product may not be compatible with the buyer's values.
B)
problems communicating or demonstrating the new product's benefits.
C)
risk in buying something for the first time.
D)
all of the above.
E)
9 What is the most important reason why industry sales level off in the market maturity stage of
the product life cycle?
aggressive competitors entering the markets.
A)
price cutting.
B)
less efficient firms leaving the market.
C)
pool of potential users is exhausted.
D)
persuasive promotion.
E)
1 Rallo Company has seen most of its competitors drop out of its product market due to declining
0 sales and profits. However Rallo still has much demand for its products from a small group of
loyal customers. In which stage of the product life cycle is this product market?
market introduction.
A)
market growth.
B)
market development.
C)
market maturity.
D)
sales decline.
E)
B)
entirely different target markets may be involved at different stages of the product
life cycle.
industry profits are increasing well after sales start to decline.
C)
D)
a company's marketing mix usually should be kept constant over the product life
cycle.
all of the above.
E)
1 A pioneer in a product market may have the opportunity to establish industry norms, which may
3 include:
selection of distribution channels.
A)
earning monopoly profits.
B)
losing money.
C)
research and development.
D)
removing barriers to entry.
E)
1 Which of the following gives the correct order of the steps in the new product development
4 process?
development, idea generation, screening, idea evaluation, commercialization.
A)
idea generation, idea evaluation, development, screening, commercialization.
B)
commercialization, idea generation, idea evaluation, screening, development.
C)
idea generation, screening, idea evaluation, development, commercialization.
D)
screening, idea generation, idea evaluation, development, commercialization.
E)
1 Which of the following is an effective source of ideas at the idea generation stage of the new
5 product development process?
its R & D department.
A)
customer complaints.
B)
competitors' products.
C)
lead users of the product.
D)
all of the above.
E)
1 Concept testing:
7
involves usage tests by potential customers.
A)
B)
seeks potential customers' reactions and attitudes toward new product ideasbefore
actual models are developed.
takes place during the screening step of the new product development process.
C)
is the last step before the commercialization of a new product idea.
D)
both c and d.
E)
C)
screening based on consumer welfare is never used.
D)
all of the above.
E)
2 Product managers:
0
no longer work with advertising because of the rush of everyday business.
A)
are increasingly taking responsibility for their products' profitability.
B)
are designed to replace sales managers.
C)
do not work in services.
D)
none of the above.
E)
Submit Answ ers