Question 1

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

Accepted Answer

By introducing new packaging and colors, Heinz was modifying the product to appeal to consumers.

Question 2

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

Accepted Answer

The iPod has been in the market for several years and has captured a significant share of the music player market. As such, it is in the maturity stage of the product life cycle. While newer versions of the iPod continue to be developed, the overall market for music players has matured, and the iPod no longer experiences the rapid growth that is typical of the introduction and product development stages.

Question 3

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."
-Which of the following stages of the new-product development was Evelyn involved in when she set up a demonstration booth to learn about consumers' feelings toward her vacuum cleaner?
A) concept testing
B) marketing strategy development
C) idea screening
D) commercializing
E) crowdsourcing

Accepted Answer

Evelyn was involved in concept testing when she set up a demonstration booth to learn about consumers' feelings toward her vacuum cleaner.

Question 4

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

Accepted Answer

The sentence states that P&G sold off these brands, which means they decided to drop them or discontinue them from their product portfolio. Therefore, the correct choice is C.

Question 5

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

Accepted Answer

The role of a product steward is to protect the company from liability by proactively identifying and addressing potential product problems related to safety, compliance, and sustainability. They oversee the entire life cycle of a product and manage risks associated with product development, design, and distribution. They work closely with various internal departments such as R&D, production, marketing, legal, and customer service to ensure that the product is safe, compliant with relevant regulations, and sustainable.

Question 6

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."
-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

Accepted Answer

The answer of Refer to the scenario below to answer...

Question 7

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

Accepted Answer

Standardizing an international product leads to image consistency, meaning that customers can recognize and trust the brand no matter where they are in the world. This can help increase brand recognition and loyalty. Regional design flexibility, decreased product demand, increased manufacturing costs, and higher marketing costs are not necessarily consequences of standardization.

Question 8

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

Accepted Answer

When a product enters the maturity stage, it is important to modify the product, market or marketing mix to maintain its market position and profitability. This can be done through new product features, promotions, pricing strategies, or expanding to new markets. Harvesting or divesting the product line may be considered if it is no longer profitable or does not fit with the company's overall strategy, but is not the first choice in the maturity stage. Liquidating the firm's assets or dropping the product from the market would be extreme measures and not typically considered in the maturity stage.

Question 9

New-product development begins with a systematic search for new product ideas through idea generation.

Accepted Answer

This is a widely accepted and practiced approach to new-product development.

Question 10

A product idea is an idea for a possible product that a company can offer the market.

Accepted Answer

A product idea is a concept or suggestion for a product that a company can develop and offer to consumers in the market. It may be based on a new need or want, an improvement to an existing product, or an entirely new innovation.

Question 11

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

Accepted Answer

Crayola crayons have been in the market for a long time and have achieved widespread popularity. This indicates that they are in the maturity stage of the PLC, where sales are steady and competition is high.

Question 12

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

Accepted Answer

The answer of When Kraft focused on cost-cutting with its...

Question 13

Companies seldomly solicit ideas from customers during the idea generation stage of product development.

Accepted Answer

Many companies actively solicit ideas from customers during the idea generation stage of product development. This practice is known as "open innovation" and is becoming increasingly popular as companies seek to involve customers in the product development process and better meet their needs and preferences.

Question 14

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

Accepted Answer

Patent laws protect the rights of the inventor or creator of a particular product, process, or idea. This means that a company cannot make a product that is identical or too similar to a competitor's product if that competitor holds a valid patent for the product. Violating patent laws can result in legal action and financial penalties.

Question 15

A firm can obtain new products through acquisition or new-product development efforts.

Accepted Answer

A firm can either acquire new products through mergers and acquisitions or develop them internally through new-product development efforts.

Question 16

Acquisition involves the purchase of a whole company, a patent, or a license to produce someone else's product.

Accepted Answer

Acquisition refers to buying a complete company, a patent, or a license to produce someone else's product.

Question 17

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

Accepted Answer

CellTones should be most concerned with patent laws since they have closely modeled their products after successful products in the marketplace. This could potentially lead to patent infringement lawsuits and legal issues which could impact the success and profitability of the company.

Question 18

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."
-Evelyn's vacuum is at the ________ stage of the product life cycle.
A) product development
B) laggard
C) growth
D) decline
E) maturity

Accepted Answer

The product is in the product development stage as Evelyn is still testing the market and gathering consumer feedback before a full-scale launch.

Question 19

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

Accepted Answer

Manufacturers are required to comply with laws regarding product quality and safety to ensure that their products do not harm consumers or the environment. This includes compliance with regulations such as the Consumer Product Safety Act, Food and Drug Administration regulations, and Occupational Health and Safety regulations. Profit margins, product harvesting, distribution channel length, and product life cycles are important considerations for manufacturers, but they are not governed by specific laws in the same way that product quality and safety are.

Question 20

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

Accepted Answer

The fact that the company is trying to extend the life of their product by selling to a new market (restaurants and hotels) suggests that the product is in decline. Thus, the company is in the decline stage of the product life cycle (PLC).

Quiz 9: New-Product Development and Product Life Cycle Strategies

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 ________.

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.

Which of the following best describes the role of a product steward?

Which of the following is a consequence of standardizing an international product?

When a product is in the maturity stage, the company should most likely consider ________.

New-product development begins with a systematic search for new product ideas through idea generation.

A product idea is an idea for a possible product that a company can offer the market.

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.

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.

Companies seldomly solicit ideas from customers during the idea generation stage of product development.

Because of ________, a company cannot make its product illegally similar to a competitor's already established product.

A firm can obtain new products through acquisition or new-product development efforts.

Acquisition involves the purchase of a whole company, a patent, or a license to produce someone else's product.

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?

Manufacturers must comply with specific laws regarding ________.

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.