Question 1

DLW,an automobile manufacturer,has found that sales of it RockStar SUV has fallen over the last few years.It introduces a new,revamped version of the SUV with the latest GPS technology and vehicle safety features.The company stops production of the old model in order to invest all of its resources into marketing this new model.Which of the following growth strategies is DLW employing?
A) Market development
B) Market penetration.
C) Product development.
D) Market penetration

Accepted Answer

The growth vector matrix indicates the direction in which the organization is moving with respect to its current products and markets. Product development refers to creating new products to replace existing ones.

Question 2

Which of the following observations about new product policy is true?
A) Policy-making criteria on new products should specify a working definition of the profit concept that is acceptable to top management.
B) There should be no specific time period for the product to become operational as this disturbs the new product development process.
C) When developing a new product policy, a company should focus more on consumer satisfaction levels than on the product's economic contribution.
D) A short-term focus is necessary for an effective new product policy in order to gain competitive advantage.

Accepted Answer

Policy-making criteria on new products should specify (1) a working definition of the profit concept acceptable to top management, (2) a minimum level or floor of profits, (3) the availability and cost of capital to develop a new product, and (4) a specified time period in which the new product must recoup its operating costs and begin contributing to profits.

Question 3

Light Eats is a buffet-style salad bar with locations in the South,West,and Midwest United States.It serves a variety of salads and soups for the health conscious.Recently it has introduced 'Frozen Fruit' bars serving ice creams and sorbets that are made from fresh fruits and vegetables.Which of the following new product categories does the 'Frozen Fruit' bar fall into?
A) New-to-the-world products
B) New-to-the-firm products
C) Improvements and revisions of existing products
D) Additions to existing product lines

Accepted Answer

Authors C. Merle Crawford and Anthony DiBenedetto have developed a useful definition of new products based on different product categories. Additions to existing product lines are products that extend existing product lines to current markets.

Question 4

Which of the following strategies refers to creating new products to replace existing ones?
A) Market penetration
B) Product development
C) Market development
D) Market diversification

Accepted Answer

The growth vector matrix indicates the direction in which the organization is moving with respect to its current products and markets. Product development refers to creating new products to replace existing ones.

Question 5

Which of the following growth strategies either increase frequency of consumption or increase the number of customers using the firm's product(s)?
A) Diversification and market penetration
B) Product development and diversification
C) Market development and diversification
D) Market development and market penetration

Accepted Answer

A goal of market penetration and market development strategies is to either increase frequency of consumption or increase the number of customers using the firm's product(s).

Question 6

Which of the following organizational growth strategies deals with present products in present markets?
A) Diversification
B) Product development
C) Market development
D) Market penetration

Accepted Answer

The market penetration growth strategy deals with present products in present markets. It denotes a growth direction through the increase in market share for present product markets.

Question 7

According to the growth vector matrix,which of the following products usually require the firm to make significant investments in research and development and make significant changes in its organizational structure?
A) New products
B) Repositioned products
C) Improved products
D) Additions to existing products

Accepted Answer

New products, as defined in the growth vector matrix, usually require the firm to make significant investments in research and development and may require major changes in its organizational structure.

Question 8

Which of the following refers to developing new products and cultivating new markets?
A) Market penetration
B) Diversification
C) Product development
D) Product differentiation

Accepted Answer

The growth vector matrix indicates the direction in which the organization is moving with respect to its current products and markets. Diversification refers to developing new products and cultivating new markets.

Question 9

Devon,Inc.first marketed Silky Soft as a brand of body lotion to compete with other similar body lotions.Today Devon promotes its Silky Soft lotion as an insect repellant that is also good for your skin.Which of the new product categories does Silky Soft lotion fall into?
A) New-to-the-world products
B) New-to-the-firm products
C) Additions to existing product lines
D) Repositionings

Accepted Answer

Authors C. Merle Crawford and Anthony DiBenedetto have developed a useful definition of new products based on different product categories. Repositionings are products that are retargeted for a new use or application.

Question 10

Which of the following denotes a growth direction through the increase in market share for present product markets?
A) Market penetration
B) Diversification
C) Product development
D) Benchmarking

Accepted Answer

The growth vector matrix indicates the direction in which the organization is moving with respect to its current products and markets. Market penetration denotes a growth direction through the increase in market share for present product markets.

Question 11

Xapple,Inc.,a manufacturer of bottled lemonade and other soft drinks,has released a new,zero-calorie drink called Diet Lemonade.This is an example of _____.
A) new-to-the-world products
B) new-to-the-firm products
C) additions to existing product lines
D) repositionings

Accepted Answer

Authors C. Merle Crawford and Anthony DiBenedetto have developed a useful definition of new products based on different product categories. Additions to existing product lines are products that extend existing product lines to current markets.

Question 12

Products that generate a maximum dollar profit with a minimum amount of risk should be:
A) harvested or divested.
B) developed and marketed.
C) produced only for the local market.
D) shelved for future use.

Accepted Answer

Ideally, products that generate a maximum dollar profit with a minimum amount of risk should be developed and marketed. However, it is very difficult for planners to implement this idea because of the number and nature of the variables involved.

Question 13

Which of the following is an example of a product development strategy?
A) A microprocessor manufacturer introduces a new microprocessor chip to replace the older, slower version.
B) McDuffy's fast food restaurant opens its first overseas restaurant.
C) A carpet manufacturer introduces an organic stain remover designed to remove even the worst spills.
D) The manufacturer of Nine Lives cat food adds a line of flea collars.

Accepted Answer

The growth vector matrix indicates the direction in which the organization is moving with respect to its current products and markets. Product development refers to creating new products to replace existing ones.

Question 14

Which of the following indicates the direction in which the organization is moving with respect to its current products and markets?
A) Growth vector matrix
B) Line extension
C) Market segmentation
D) Market diversification

Accepted Answer

Growth vector matrix indicates the direction in which the organization is moving with respect to its current products and markets. Developed by H. Igor Ansoff, it offers a broader approach to the new product question.

Question 15

Product development and diversification can be characterized as _____.
A) product mix strategies
B) strategies based on differentiation
C) target market segmentation strategies
D) cost leadership strategies

Accepted Answer

The growth vector matrix indicates the direction in which the organization is moving with respect to its current products and markets. Product development and diversification can be characterized as product mix strategies.

Question 16

Which of the following should be specified by the policy-making criteria on new products?
A) A maximum level of profits that can be expected.
B) The exact market share of the new product.
C) The exact level of expected profits.
D) The availability and cost of capital to develop a new product.

Accepted Answer

Policy-making criteria on new products should specify (1) a working definition of the profit concept acceptable to top management, (2) a minimum level or floor of profits, (3) the availability and cost of capital to develop a new product, and (4) a specified time period in which the new product must recoup its operating costs and begin contributing to profits.

Question 17

What kind of new product strategy is being used when an automobile manufacturer introduces a new car model to replace an existing one?
A) Market development
B) Product development
C) Market diversification
D) Market penetration

Accepted Answer

The growth vector matrix indicates the direction in which the organization is moving with respect to its current products and markets. Product development refers to creating new products to replace existing ones.

Question 18

Pizzas n' Pies has entered into a deal with Templeton Hotels to have their brand of specialty pizzas offered on the hotel's room service menu.Which of the following growth strategies is Pizzas n' Pies using?
A) Market development
B) Product development
C) Market saturation
D) Diversification

Accepted Answer

The growth vector matrix indicates the direction in which the organization is moving with respect to its current products and markets. Market development refers to finding new customers for existing products.

Question 19

On earnings associated with new products,it is critical that:
A) management has a pressure of steady improvement in earnings per share.
B) firms do not become solely preoccupied with a short-term focus.
C) the emphasis should be on short-term profits.
D) the firm realize that profitability will not be supported by the stock market in terms of higher share prices over the long term.

Accepted Answer

It is critical that firms not become solely preoccupied with a short-term focus on earnings associated with new products. Through a continual introduction of new products, firms will succeed in building share.

Question 20

The appearance of special guest stars on a regular television show is a strategy used to find new viewers for the existing show.It also helps in increasing the market share of the network that airs the show.Television networks encourage such guest appearances to implement which of the following growth strategies?
A) Market development
B) Product development
C) Market saturation
D) Diversification

Accepted Answer

The growth vector matrix indicates the direction in which the organization is moving with respect to its current products and markets. Market development refers to finding new customers for existing products.

Quiz 7: New Product Planning and Development

Which of the following observations about new product policy is true?

Which of the following strategies refers to creating new products to replace existing ones?

Which of the following growth strategies either increase frequency of consumption or increase the number of customers using the firm's product(s) ?

Which of the following organizational growth strategies deals with present products in present markets?

According to the growth vector matrix,which of the following products usually require the firm to make significant investments in research and development and make significant changes in its organizational structure?

Which of the following refers to developing new products and cultivating new markets?

Devon,Inc.first marketed Silky Soft as a brand of body lotion to compete with other similar body lotions.Today Devon promotes its Silky Soft lotion as an insect repellant that is also good for your skin.Which of the new product categories does Silky Soft lotion fall into?

Which of the following denotes a growth direction through the increase in market share for present product markets?

Xapple,Inc.,a manufacturer of bottled lemonade and other soft drinks,has released a new,zero-calorie drink called Diet Lemonade.This is an example of _____.

Products that generate a maximum dollar profit with a minimum amount of risk should be:

Which of the following is an example of a product development strategy?

Which of the following indicates the direction in which the organization is moving with respect to its current products and markets?

Product development and diversification can be characterized as _____.

Which of the following should be specified by the policy-making criteria on new products?

What kind of new product strategy is being used when an automobile manufacturer introduces a new car model to replace an existing one?

Pizzas n' Pies has entered into a deal with Templeton Hotels to have their brand of specialty pizzas offered on the hotel's room service menu.Which of the following growth strategies is Pizzas n' Pies using?

On earnings associated with new products,it is critical that: