Developing New Products And Managing The Product Life Cycle

This question bank verified by Studydeets
All Questions
Filter by:
Question 1
Free
Multiple Choice

Which of the following is a significant challenge presented by the product life cycle?

Choose correct answer/s
A

increased expenses

B

increased competition

C

new product development

D

evaluation of results

E

recognizing the stages as a product goes through them

Check answer
Question 2
Free
Multiple Choice

Acquisition refers to ________ .

Choose correct answer/s
A

the buying of a whole company, a patent, or a license to produce someone else's product

B

an agreement between two or more commercial companies to produce a common product

C

a partnership between two companies to produce a product in different countries by sharing risks

D

investments made in a country's businesses by foreign citizens, often in the form of stocks

E

the development of original products, product improvements, product modifications, and new brands through the firm's own product development strategies

Check answer
Question 3
Free
Multiple Choice

Electron Corp. purchased Proton Corp. by buying all of its assets and ownership equity. This is an example of a(n) ________ .

Choose correct answer/s
A

new product development

B

acquisition

C

joint venture

D

licensing contract

E

divestment

Check answer
Question 4
Free
Multiple Choice

Product improvements, product modifications, and original products can all be classified as ________ .

Choose correct answer/s
A

blueprints

B

new products

C

prototypes

D

product extensions

E

test products

Check answer
Question 5
Free
Multiple Choice

Which of the following is a common reason for new product failure?

Choose correct answer/s
A

incorrect estimation of the market size

B

low product development costs

C

ineffective social marketing campaigns

D

low selling prices of products

E

patent ownership exclusively held by the company

Check answer
Question 6
Multiple Choice

A particular firm added three new products earlier this year to increase variety for customers. Two of the products failed to reach the minimal sales quota. Which of the following is LEAST likely to have been the cause of their failure?

Choose correct answer/s
A
The products were priced too high.
B
The products were advertised incorrectly.
C
Competitors fought back harder than expected.
D
Product research was too extensive.
E
The product development costs were high.
To unlock the question
Question 7
Multiple Choice

The product life cycle presents challenges. Which of the following is LEAST likely to require a company to adapt its marketing strategies?

Choose correct answer/s
A
developments in technology
B
decreased manufacturing costs
C
competition
D
changing tastes of consumers
E
aging of products
To unlock the question
Question 8
True/False

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

Choose correct answer/s
True
False
To unlock the question
Question 9
True/False

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

Choose correct answer/s
True
False
To unlock the question
Question 10
True/False

Adapting marketing strategies is not a challenge faced in the product life cycle.

Choose correct answer/s
True
False
To unlock the question
Question 11
Essay

Explain common reasons for the failure of new products. What must be the goals for a company to create successful new products?

To unlock the question
Question 12
Multiple Choice

New product development starts with ________ .

Choose correct answer/s
A
concept development
B
idea screening
C
idea generation
D
concept testing
E
test marketing
To unlock the question
Question 13
Multiple Choice

John's fascination for his grandmother's sherbet recipes inspired him to come up with a recipe for SherBetter, a gourmet sherbet for the American market. Which of the following stages of the new product development process does this exemplify?

Choose correct answer/s
A
idea screening
B
idea generation
C
concept testing
D
product development
E
product manufacturing
To unlock the question
Question 14
Multiple Choice

Which of the following is an internal source for new product ideas?

Choose correct answer/s
A
competitors
B
company employees
C
marketing research firms
D
trade magazines
E
government agencies
To unlock the question
Question 15
Multiple Choice

Many companies have developed ________ programs that encourage employees to develop new product ideas.

Choose correct answer/s
A
management
B
incentive
C
entrepreneurial
D
intrapreneurial
E
crowdsourcing
To unlock the question
Question 16
Multiple Choice

Why are customers often considered the most important sources of new product ideas?

Choose correct answer/s
A
Customers are close to the market and can pass along information about problems and new product possibilities.
B
The company can analyze customer questions and complaints to find new products that better solve consumer problems.
C
Customers buy competing new products, take them apart to see how they work, analyze sales, and then decide to purchase.
D
Customers review the sales, costs, and profit projections for a new product to find out whether the product satisfies the company's objectives.
E
Customers estimate the minimum and maximum sales to assess the range of risk.
To unlock the question
Question 17
Multiple Choice

Which of the following is an external source for ideas?

Choose correct answer/s
A
project managers
B
engineers
C
salespeople
D
manufacturing staff
E
suppliers
To unlock the question
Question 18
Multiple Choice

Who can pass along information about new concepts or techniques to use in new products?

Choose correct answer/s
A
competitors
B
salespeople
C
customers
D
suppliers
E
distribution channels
To unlock the question
Question 19
Multiple Choice

Which of the following is the practice of inviting broad communities of customers, employees, independent researchers, and members of the public into the new product innovation process?

Choose correct answer/s
A
brainstorming
B
idea screening
C
crowdsourcing
D
outsourcing
E
concept testing
To unlock the question
Question 20
Multiple Choice

Which of the following statements is true of the idea generation stage in the new product development process?

Choose correct answer/s
A
The purpose of idea generation is to reduce the number of ideas to the least possible number.
B
Truly innovative companies rely exclusively on a single source for new product ideas.
C
Customers are the least important sources of new product ideas.
D
Truly innovative companies develop extensive innovation networks that capture ideas and inspiration from every possible source.
E
Truly innovative companies seldom rely on customers and the general public for ideas.
To unlock the question