Question 1

The __________ step in the product development process is critical,requiring tremendous resources and extensive coordination of all aspects of the marketing mix.

Accepted Answer

The product launch step in the product development process is critical because it requires extensive coordination of all aspects of the marketing mix, such as advertising, distribution, pricing, and promotions. It also involves significant resources, including financial, human, and time, to successfully introduce the product to the market.

Question 2

By the time BMW and Mercedes-Benz entered the mini-SUV market,there were many competitors,sales had peaked,and profits were declining.These firms entered the market during the __________ stage of the product life cycle.

Accepted Answer

The maturity stage of the product life cycle is characterized by a saturated market with many competitors, peak sales, and declining profits, which aligns with the scenario described.

Question 3

A marketing professor in Ithaca,New York,maintains a museum of failed consumer products.Most new products in this museum failed during the __________ stage of new product development,when they are introduced to a limited geographic area.

Accepted Answer

The statement specifically mentions that the products failed during the "test marketing" stage, which is the stage where the new product is introduced to a limited geographic area. Therefore, the correct answer is C) test marketing.

Question 4

During the __________ stage of the product life cycle,sales are low and profits are small or negative.

Accepted Answer

During the introduction stage, a new product is being launched and sales are usually slow due to low awareness and limited distribution channels. This results in low profits or even losses as marketing and production costs are high.

Question 5

The Apple iPod changed the way people listen to music but it also created an entirely new industry devoted to accessories such as cases,ear buds,docking stations,and speakers.The Apple iPod is considered a

Accepted Answer

The Apple iPod was a pioneer product because it introduced a new way of listening to music and revolutionized the music industry with its innovations. The creation of an entirely new industry devoted to its accessories further confirms its status as a pioneer product.

Question 6

When Dr.Putt invented his Eye-Over-the-Ball (EOB)golf putting device,he knew during the introductory stage

Accepted Answer

During the introductory stage of a product, sales are typically low because the product is just being introduced to the market, and profits are often nonexistent as the initial costs of product development and marketing are being recovered. Innovators, who are always on the lookout for the latest advancements, are usually the first to try new products.

Question 7

All of the following would be part of the launch of a new product except

Accepted Answer

Starting to make preliminary decisions about the target market should occur before the launch phase of a new product. This step is crucial for guiding the development of the product, its marketing strategy, and how it will be positioned in the market. The other options (A, B, C, D) are typical activities that would occur during the launch phase.

Question 8

During the ___________ stage of the product life cycle,firms either position themselves for a niche segment of diehard consumers or they completely exit the market.

Accepted Answer

During the decline stage of the product life cycle, sales and profits decrease due to decreased demand or increasing competition. Firms may choose to exit the market entirely or focus on a niche segment of diehard consumers who are still loyal to the product.

Question 9

During the __________ stage of the product life cycle,sales peak and profits begin to decline as competition becomes intense.

Accepted Answer

During the maturity stage, sales of the product will continue to grow, but at a decreasing rate, and competition increases, which results in declining profits.

Question 10

The growth phase of the product life cycle is always dynamic.All of the following occur during this phase except

Accepted Answer

All of the other options are potential occurrences during the growth phase of the product life cycle. However, price competition with protracted price wars erodes profits is not a typical occurrence during this phase. Instead, it is more commonly found during the maturity or decline phases of the life cycle.

Question 11

When McDonald's comes up with a new drink or sandwich for its restaurants,it often markets it in a dozen or so of its outlets.When the company does this,it is engaged in

Accepted Answer

When McDonald's markets a new drink or sandwich in only a few of its outlets, it is engaging in test marketing. Test marketing involves introducing a new product in a small number of locations to gauge its potential success before making it available in all outlets.

Question 12

Microsoft's Windows operating system continues to dominate the market,even though it has been around for over 20 years.Windows will likely remain in the maturity stage of the product life cycle

Accepted Answer

Every product goes through the stages of the product life cycle - introduction, growth, maturity, and decline. Windows has been in the maturity stage for a while now, but as long as there is no superior product to replace it, it will continue to dominate the market in this stage. Therefore, choice C is the best answer as it suggests that Windows will remain in the maturity stage until a superior product comes along to replace it.

Question 13

Some products may stay comfortably in the maturity phase of the product life cycle until a new product emerges to replace them.An example of such a mature product is

Accepted Answer

Refrigerators are an example of a product that has remained in the maturity phase for a long time. They are a staple in households worldwide, with incremental improvements over time rather than significant innovations that would start a new product life cycle.

Question 14

During the __________ stage of the product life cycle,sales rise,profits rise rapidly,and there are a small but increasing number of competitors.

Accepted Answer

During the growth stage, sales and profits are increasing rapidly as the product gains acceptance in the market. There are still relatively few competitors, but competition may begin to increase as the market grows.

Question 15

Beverly is assessing the results of a new product launch of a series of e-books for her bookstore.When evaluating the results,Beverly will likely consider all of the following except

Accepted Answer

The other options listed are all relevant factors that Beverly would consider when evaluating the success of the e-book launch. However, the reason for Beverly's delay in considering the new product line is not relevant to the current evaluation of the product's success.

Question 16

When Toyota introduced hybrid cars,there were waiting lists to buy them.Then Honda and a few other manufacturers entered the market,shifting the product life cycle for hybrid cars into the __________ stage of the product life cycle.

Accepted Answer

The introduction stage is when a new product enters the market and there is little to no competition. The leveling stage is when the product experiences stable sales, but there is also no growth. The maturity stage is when sales start to level off and eventually decline. The decline stage is when the product loses popularity and sales decrease significantly. Based on the information given, it is clear that the introduction stage has already passed since Toyota had waiting lists for their hybrid cars. The fact that Honda and other manufacturers have entered the market suggests that the product has moved into the growth stage where there is increased competition and sales are increasing. Therefore, the best choice is D) growth.

Question 17

All of the following are included in the four product life cycle stages except

Accepted Answer

The correct product life cycle stages are introduction, growth, maturity, and decline. Stagnation is not a part of the traditional product life cycle model.

Question 18

Because a market is saturated,firms may attempt to enter new geographical markets that may be less saturated.For example,pharmaceutical companies are realizing that they need to turn to ____________ for continued growth in the coming years.

Accepted Answer

BRIC countries (Brazil, Russia, India, and China) are emerging markets that have shown strong economic growth and increasing demand for pharmaceutical products. This makes them attractive targets for pharmaceutical companies seeking growth opportunities in less saturated markets. Third-world countries and communist countries may also be less saturated, but the terminology is outdated and not politically correct. Germany and France are both well-developed markets with high levels of competition, making them less attractive for firms seeking to enter new markets.

Question 19

All of the following are characteristics of products in the maturity stage of the product life cycle except

Accepted Answer

Laggards are not a major focus of marketing efforts in the maturity stage of the product life cycle. Laggards are typically the last to adopt a product and are not a significant market segment in the maturity stage. The focus of marketing efforts in the maturity stage is typically on retaining existing customers and increasing market share through product differentiation and targeting new market segments.

Question 20

Which of the following reflects the maturity stage of the product life cycle?

Accepted Answer

The peak stage of the product life cycle is characterized by high sales and high profits but with a peak that may start to decline. Typical consumers during this stage are the late majority and there are usually a high number of competitors and competitive products.

Quiz 12: Developing New Products